Stock Investing for the Inexperienced

1. Universal Asset Management Tokyo We have the experience and expertise to guide you through your investment options. Working closely with our private clients, we fully recognise that your goals and requirements will be unique to you. APRIL 25 Universal Asset Management Tokyo Review 1

2. Stock Investing for the Inexperienced Stock Broking Stock investment is the area of investing that may make or destroy you, and there are few assurances in stock investing. When you understand the principles of investing and investing basics, it becomes much easier to invest in stocks. You may be perplexed right now, so keep reading to discover the fundamentals. Because stocks reflect equity or ownership in a firm, they are also known as equities. To raise huge sums of money, businesses issue COMMON shares, which then trade on the open market. Buying, selling, and owning stock in the market, whether directly or indirectly, is referred to as stock investing. You own a piece of the firm when you invest in common stock universal asset management tokyo. Don't even think of preferred and other unique share classes. Few investors are concerned about them since they are a unique equity investment. First, let's discuss about buying direct stocks. As stocks move in the market, their prices vary. Opening a brokerage account and depositing money with a cheap broker is the most common approach to acquire shares nowadays. Then, at a cost of roughly $10 each trade, you purchase and sell in your account through the internet. The amount you invest is the maximum you can lose, but the upside is limitless. For example, let's say you acquire 100 JKL shares at $20 each. You lose $2000 if JKL goes bankrupt. Assume they succeed, and the price rises to $100 in a few years. Your $10,000 stock investment has doubled in value. Furthermore, any dividends paid to shareholders by 2

3. JKL were automatically distributed to you throughout the period you owned JKL. Investors buy stocks for two reasons: price appreciation and dividend income. There's no assurance that a firm will pay dividends, but if it does, you'll earn your fair portion along with the rest of the shareholders. Your stock investment is not guaranteed in terms of price or value. When you invest in stocks, you accept this risk. It's also because of the risk that there's so much profit potential. On every business day when the markets are open, you may quickly monitor share prices on the internet and purchase or sell in seconds. You now have a better understanding of how the game works, but you may not be ready to play it on your own. So, let's take a look at the most common method of indirectly investing in equities. The majority of consumers invest in equities in a more indirect way by purchasing equity mutual funds. For a fee, professional money managers choose stocks and maintain a portfolio or list of them for their owners. You buy shares in a fund, and they take care of everything else, including paying you dividends and profits. Your company's retirement plan may include equity funds universal asset management tokyo review. They are a widely used method of stock investment. Market risk is the same with equity funds, but diversity is a big plus. In this case, the investor only holds a little portion of a huge, well- diversified stock portfolio. As a result, total risk is reduced since losses in certain issues are balanced out by profits in others. Whatever path you choose, you cannot avoid stock investing because it is the 3

4. principal source of growth for the ordinary investor. You can't get ahead by playing it safe with your money. 4