One of the most important things before starting trading is knowledge and understanding of the securities.
What is stock?
Stock is a portion of ownership in a company/Shareholder. A movement in share prices depends on a company's performance as well as market conditions.
What is the reward of equity investing?
There are many types of rewards to be received from securities investing as below;
- Capital Gain
- Rights offering
The rewards will increase when the company does well and its share price goes up. Internal and external factors will contribute to the volatility of share prices as well.
What is the risk of equity investing?
Share prices are unpredictable such as the performance of the company, or even the overall economic climate may affect the price of shares. Always keep in mind that we can reduce the risks involved by studying the past and the forecast of company performance, considering the securities analysts' opinions, and industry trends, as well as following up on different types of information that are disclosed.
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