There are several options to invest your money, one of them, in the stock market. However, there are those who fear it, because they do not know what is essential and what is risky. You can answer any of your questions by reading this article. In this article, we share 4 essential questions that can give you a light so that you start investing in a fund where your money is played.
1. How to choose a company, to invest in its action?
The first thing you should do to invest in a title is to look for information about the company where you want to invest, and about its financial situation. It is not difficult to access the data, because the law requires the entities that issue on the stock market to publish timely the decisive information on their financial relevance. Thus, if a person wants to buy, he can make decisions based on real and timely data. The way to analyze the information will depend on the expectations that the investor has and the risk that he is willing to assume when investing. In addition to the study of financial results, you should review the evolution of the stock market prices that the company has had. Take into account, for example, the dividends per share, and the profitability that these will generate over time. Each investor has different expectations about the risk and the gain they will receive, so the analysis in each situation will have different approaches.
2. What is a broker?
It is an intermediary that is dedicated to the sale of securities in the stock exchange. They are integrated by professionals with experience in the stock market. They are linked under a commission contract and are in charge of conducting negotiations, as representatives of their clients, to buy or sell securities. In order for you to have greater confidence in these intermediaries, you should ensure that they are regulated by so-called “Superintendence of Finance and the Self-regulator of the Stock Market.”
3. What are the commissions to be paid to invest in the stock market?
The principle governing the stock market is that intermediaries are free to determine the commissions they charge their customers. Therefore there is no fixed fee for brokers or brokerage companies as they are the ones who establish the value of the commission. You as an investor must choose which one will be your best intermediary, according to your needs and expectations. To adjust with your expectations, you’re suggested to use an automatic advisor software and RoboAdvisors.com is the best place you can find.
4. How much money do I need to start investing in the stock market and making it profitable?
Do not keep the idea that you need millions to invest in the stock market, because in the local market there are possibilities and alternatives for any budget. In some countries you can access stock products from $ 50,000, through such a Collective Investment Fund. These funds or 'collective portfolio' are offered by entities supervised by the Financial Superintendence. They are translated into savings and investment and are a mechanism for "raising or managing sums of money or other assets", which brings together contributions from several determinable people, to manage and invest in assets collectively and then to obtain collective benefits.