What is the Stock? it’s advantage and disadvantage.

hello friends, i am laxman today’s in this article we see the what is the Stock and also it’s advantage and disadvantage in step by step manner as well as it’s stock risk and how to get advantage of that and how to avoid the disadvantage of stock in following paragraph.

What is the Stock?

Stock is the piece of company. When you have more stock of any company that does not established you but you have the power to owner of that company. if company grow then your value of money also grow. if company gives you dividend you receive the dividend. Dividend is the bonus of owning stock, and company give the raising dividend to the stock.

 

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Advantage of stock:

1. if you own the stocks you are the partner of that company.
2. you get the dividend.
3. Investment return is maximum than any other financial instrument.
4. you can sell it any time when you want as compare with bonds.
5. stock beat the inflation rate.
6. when stock paper is stolen or burned you get them back.

Disadvantage of stock:

1. Stock is go easily up or down is only depends on the company owner.
2. In stock you lose money when they go down.
3. with you greed stock lose their value.
4. in trading you lose so much money on stock.
5. stock can be manipulate with higher stakeholder.

In above paragraph you see what is the stock? and also it’s advantage and disadvantage. If you have the quality of Intelligent Investor you will be make benefit from the stocks. what is the quality of intelligent investor we see in the next article. In our life the relative or friends show the disadvantage of stock. they told you away from that. but reality is that 99.99% stock are raising there price by giving them time i.e. 5 years, 10 years. and you will be raise you price of money with stock.

when people lose there money in stock they give up for the long time. and they spread this disease to his friends and relatives. when you have the training and the good quality of investor you will be rich by just owning the stocks.

this is all about the what is the stock? and also it’s advantage and disadvantage.

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