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I only buy in installments when others panic.
I only buy in installments when others panic.
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Beginner's Guide to Stock Investment
Stocks, as a high-yield investment tool, have always been a focus in the financial market. For ordinary investors, understanding the basic concepts of stocks and investment strategies is the first step into the investment field. This article will revolve around the definition of stocks, basic principles of investment, and common risk management strategies.
What are Stocks?
Stocks are ownership certificates issued by companies, representing the holder's ownership of part of the company's assets and income. When you buy a company's stock, you become a shareholder of the company, with the right to share the company's profits and to express opinions on major matters of the company (through shareholder voting at the shareholders' meeting).
Stocks are mainly divided into two categories:
1. Common StockCommon stockholders can participate in company dividends, but the dividend amount is not fixed and has a lower priority than preferred stock.
2. Preferred Shares: Preferred shareholders have priority in receiving fixed dividends, but usually do not have voting rights.
2. Why invest in stocks?
1. High potential returns.
From a long-term perspective, the stock market has a relatively high annualized return. Many historical data indicate that the long-term ROI of stocks exceeds traditional investment methods such as bonds and deposits.
2. Combatting inflation
Inflation can lead to a decrease in the purchasing power of money, while stock investments can achieve asset appreciation through corporate profit growth, thereby hedging against inflation risks.
3. Diversification of assets.
Stocks can be an important component of asset allocation, complementing other assets such as Real Estate and Bonds to diversify investment risks.
III. Basic Principles of Stock Investment
...
Stocks, as a high-yield investment tool, have always been a focus in the financial market. For ordinary investors, understanding the basic concepts of stocks and investment strategies is the first step into the investment field. This article will revolve around the definition of stocks, basic principles of investment, and common risk management strategies.
What are Stocks?
Stocks are ownership certificates issued by companies, representing the holder's ownership of part of the company's assets and income. When you buy a company's stock, you become a shareholder of the company, with the right to share the company's profits and to express opinions on major matters of the company (through shareholder voting at the shareholders' meeting).
Stocks are mainly divided into two categories:
1. Common StockCommon stockholders can participate in company dividends, but the dividend amount is not fixed and has a lower priority than preferred stock.
2. Preferred Shares: Preferred shareholders have priority in receiving fixed dividends, but usually do not have voting rights.
2. Why invest in stocks?
1. High potential returns.
From a long-term perspective, the stock market has a relatively high annualized return. Many historical data indicate that the long-term ROI of stocks exceeds traditional investment methods such as bonds and deposits.
2. Combatting inflation
Inflation can lead to a decrease in the purchasing power of money, while stock investments can achieve asset appreciation through corporate profit growth, thereby hedging against inflation risks.
3. Diversification of assets.
Stocks can be an important component of asset allocation, complementing other assets such as Real Estate and Bonds to diversify investment risks.
III. Basic Principles of Stock Investment
...
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