What Investment Securities Are And How To Make Money In It?38,429 Views
Many people think that with a relatively small budget to have a deal with investment securities is expensive. But it is not really true.
Everyone who has patience and at least a few hundred dollars can already start on the securities market and use this financial instrument. As the world experience shows, many dollar millionaires managed to get rich in stocks, starting from the beginner’s level.
How to start investing in securities?
To become an investor in this sector, you need to understand:
* What are stocks, bonds, and other types of securities;
* How you can earn money on them;
* Where to buy them and what strategies to use to increase profitability and reduce risks.
Based on this knowledge, you will be able to draw up your own investment plan based on your current financial capabilities.
Why invest in securities?
This asset has several important advantages:
* Availability. To start earning, you do not need to have a lot of capital, as, for example, in the case of buying a business;
* Flexibility and versatility. There are a wide variety of securities and companies;
* High liquidity. If necessary, assets can be quickly sold at market value;
* Wide geography. It is possible to buy shares of foreign companies and invest around the world.
It must not forget that if the company that issued the shares goes bankrupt, their price will go down to a minimum. Therefore, experienced investors try to buy assets from different industries and enterprises.
Ways of making money and investment opportunities of securities
You can work with securities only with the participation of an intermediary. You can buy and sell shares through licensed traders — brokers.
The investor opens a securities account and transfers a certain amount there. Next, he applies to the broker to buy securities, indicating which assets and in what volume he wants to buy.
The broker submits the order to the exchange and the transaction takes place. The investor receives at his disposal the shares in electronic form (they are saved in a special account) and manages them at their discretion — keeps them or trades. To carry out any operations, you need to act through a broker.