Equity investment

Caution! to equity investing. With the right investment in equities can achieve attractive profits and / or dividends. In order to invest in a stock or a so-called shares a good way especially for residential and small investors is to make a contribution to the increase of money or own retirement. When searching for the right stock investment but there are several things to consider.

Shares as an investment
The investment in shares achieved the highest returns in the long run. With an average of about 8.5% per year, can be achieved in almost any other investment such high returns. Outset that it is said, however, that investing in the stock market is always associated with a certain residual risk. Therefore, one should not put his life savings on a map or share.

Share or package?
Those who choose to invest in shares in principle the possibility to choose between buying certain individual stocks or shares. When buying individual stocks shares in each company to be acquired, in any profit you will receive a percentage. In a stock package is a selection of specific stocks that are compiled according to certain criteria. As a rule, when a block of shares shares from a certain sector of the economy such as the chemical, automotive industry or commodity compiled. In order to trade on the stock market, one needs firstly a securities account in which the shares are stored, so to speak, and the second a broker who is responsible for buying and selling on the stock market. Both depots, as well as brokers are provided by most banks.

Selecting the right stock investment
Both individual stocks, as well as blocks of shares are subject to currency fluctuations and may rise and fall in value. Basically between solid stocks can (blue chips) and speculative stocks that dominate the "new market" traded distinction.
Solid (blue chips) have been shown to be stable for several years, and achieved a steady increase in value. Of particular interest in this form of shares is the dividend, which is paid as a percentage of the profit of the company to shareholders. In this respect, investments in blue-chip stocks or stock packages of particular interest for long-term investors.
Speculative shares are generally higher rates. Thus, within a short time, a high profit. But beware! It can also lose a lot of money when the price pocketed.

Equity investments as long-term investment
Those who opt for a long-term investment in the stock market should primarily select "blue chip" stocks to avoid large price fluctuations. A share package also offers its risks, since you can not depend on a particular stock or industry.

Hint
Who is not familiar with the stock market, or has no time to pursue continuous current courses should contact the Bank of trust in order to clarify in-depth counseling details and wishes. Banks usually offer beyond this, services for monitoring, purchase and sale of shares or equity stakes.
For more sophisticated investors, it is advisable to inform the Internet for direct banks for equity investment, since it will save costs in the deposit, as well as the brokerage usually can.