1. For Joint Stock Company event - the most affordable loan finance.
Among credit money needed for the normal functioning of every company and its solutions to production problems, especially equity is the most inexpensive method of obtaining borrowed money.Raising equity capital does not need the explicit terms of return and does not require regular interest payments on bank loans, or coupon payments in bonds.The service share headband consists only of the payment of dividends on the shares, and then only in the case of a positive business activities of the company.Actually cheapness of equity in comparison with other methods of raising funds and attracting joint-stock companies to resort to the issue of shares.
2. For investors share - a high risk investment.
On the other side are not expensive to maintain the equity of the issuer are significant risks for shareholders, those that they take by investing in these securities.If the failure is in the commercial activity of the enterprise, the shareholders will be in last place among those who can expect to receive a refund of their money.Despite the fact that by law, the investor has the right to receive part of the property stock at its liquidation can occur so that the share of the stock after the bankruptcy proceedings will not get virtually nothing.Often happens is that money available in case of bankruptcy of the enterprise can not even compensate for the numerous obligations to creditors, employees and owners.In connection with this investment in shares of issuers has higher risks in comparison with other methods, where to invest the money, namely investing in bonds of issuers or bank deposits.
3. In a large number of the population of the former Soviet Union countries, there are stocks of vouchers, but they are not interested in investing.
after voucher privatization companies in the hands of the citizens of the former.The Soviet Union lands a substantial number of securities in the form of shares, but such investors are not actively involved in investing in the stock market.Between the residents of the Russian Federation, the share of shareholders is comparable with the United States, however, treyderstva activity in the secondary market and the involvement of traders in the process of investing money is poor.The securities market is developing and has become overrun by private investors only after 1999 that are beginning to comprehend the rules of investing.
4. Excitement - tempting enemy investor
Operation trading on the stock exchange so exciting that most often trade brings new players a lot of pleasure.Traders procedure for them is comparable to watching an exciting thriller or a football match.However, this fundamentally expensive entertainment than a movie.Emotional Trading - the enemy of profit.No one will be able to have fun and make money at the same time.Feelings of fear and greed are trying to destroy trading clients.You have to think a head, and not to invest because of their intuition.The investor needs to focus directly on the investment process, and not on the profits generated.
5. Large traders are constantly getting richer and the newly minted investors lose and go.Again came the newcomers poured into the money market.
Most lose money, in order to able to profit units.The well-known fact that the stock market lose money and go bankrupt as a result of incorrect trading activities, mainly small traders and rarely - experienced players.We see that the experienced players generally earn, and newcomers are constantly losing and throw, and take their place came even novice traders - other such small traders.This fact is often glossed over in the course of trading, but mastering it is essential to establish profitability torgolve.Between private traders and experienced professional traders differences not only in the amount of cash as well as in the method of operations in the stock market.The differences in their philosophy of business management professionals and amateur.Most of the amateur players think they are smarter majority.Exchange business diligently supports this misconception, saying that the winners receive money losers, however, hide the fact that the game in the stock market negative amount.Courageous investors amateurs take on the frenzied risks brokers providing income and profits experienced traders.When they lose and leave the stock market, there are beginners who have been trained in the stock market rates and without practical experience treydersokgo, pour in the stock market and fresh investments.
6. The value of shares even successful firms can decrease
Some of the most prosperous businesses, such as one of the largest US bank Wells Fargo, or the company Coca-Cola, are engaged in a constant buying its shares, that is, they haveprofits directly support the low prices at which these shares has the opportunity to buy.So you can smile when you hear the cries of the journalists about how: "Investors are suffering losses due to the lowering of the cost of the stock market."Understand this: "He who sells shares - suffers losses from the fall in stock prices in the market, and the one who buys shares - generates revenue."The main thing to find yourself on the right side and the secrets of investing in stocks.
