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Sunday, September 5, 2010

Learning Stock

Before investing in stocks, we should understand what a stock and its characteristics. Stock is a form of corporate ownership. For example there is a firm example of Telkom, and you have shares in the company, then it means that you also are owners of Telkom. If you have a 1% share of all shares of Telkom Telkom's existing market means you have 1% of Telkom.

The advantage of having these shares are, we can obtain the dividend (distribution of benefits, if Telkom makes a profit) and profiting from the sale of Telkom shares of us who have climbed or so-called capital gains. Stock prices will rise, because influenced by supply and demand. If Telkom on this year obtained a large gain, then we expect no sharing of profits (dividends) are great as well. Therefore, a lot of demand for the shares of Telkom, so the price will go up.

Looking at the characteristics of the stocks above, the easiest strategy to profit from stocks is by buying shares of superior (blue chip). Stocks such as Telkom shares, and Astra.

To be able to invest in shares, you need to contact the broker or securities firm as an intermediary. To choose which company you will act as an intermediary, to note whether the company is listed on the JSE and / or SSX, commissions on sales / purchases, and what services are provided.

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