Stock exchange is a place where the stock brokers come together to trade the stocks and securities of various companies. The stocks can only be sold or bought if they are listed in the exchange. In India, National Stock Exchange and the Bombay Stock exchange are the primary stock exchanges. Once the stocks and securities are sold in these primary exchanges, they are then traded off in the secondary exchanges. It is here where people buy the stocks at the prevalent prices or at the price both the seller and buyer agree upon. Most of the time people invest looking for profits. So if you are also thinking of investing and making it big through the stock market, and consider the following reasons as this article might just give you good reasons to invest in the stocks:
- Highest potential for growth – The stock brokers in India have always vouched on the fact that the stocks generally offer a great potential to grow. The market goes through various ups and downs and despite of the rocky patch it goes through, it still yields profit for people who know the ins and outs of the market. Investment in the stocks and mutual funds goes a long way when people actually want to reap huge benefits in the long term.
- Designed to rise always – The stock market is designed in such a way that they always go up. The primary reason being the direct investment in long term stocks which usually leads to a greater payout at the time of maturity. Also sometimes when a stock doesn’t perform well, it is replaced with a higher and a better stock which helps in shooting the prices high.
- Beats inflation – The Stock exchanges always help people to earn more money since the stocks are known for keeping up the pace with exceeded inflation rates. The reason is that people always want their money to outpace inflation and retain their purchasing power in the long run.
- Doesn’t require a huge investment – The stock brokers in India always lay emphasis on going slow on investment. The investors do not need to invest a hefty amount if they are doing so for the first time or are learning. Start investing with the little amount first and try to earn good returns on your money. If you are investing in penny stocks, you can actually reap good benefits.
- Less or no brokerage required – Now with everything going online, the stock exchange has also given an option to the investors to invest online. With this they no longer need to pay the brokerage to the brokers. With the online option, the cost of brokerage also has gone considerably low. People are smart these days and research well before investing in the stocks.
The Stock exchange has now made everything transparent. You would know if they money is going in the higher direction or lower. Plus there are a number of autonomous bodies which govern the Stock Exchanges therefore the money which is being invested is not getting duped.