Why would people want to invest in the stock market? Best answer on the web

Posted in: darrelrussell.com edit
08 Jan 2009

Why would people want to invest in the stock market?

I am doing an econ essay and I need many advantages and disadvantages of investing in the stock market. Thanks. There are corporations that are making record profits. Investing in the stock market doesn't come with a guarantee of success. To make money.
  • Advangate- Make money
    Disadvantage- Lose Money
  • It's the easiest way to make money for those that can't make big purchases such as real estate, commodities and even whole companies. It historically has been the best place for an investment over time, beating out even real estate. So for those with little money ($2,000+ for a chance at a good return although one could start with under $100 and the only reason is you have to factor in the buy and sell fee as part of the return.) , they can choose bonds or stocks to invest in, but stocks give a better rate over time than bonds.
  • IT IS JUST ONE PLACE FOR LONG TIME INVESTING.
  • Adv: Love of gambling??
    Disadv: Fear of loss??
  • Capital appreciation and dividends

    These companies are not private they are public entities that are held by the voting rights of their share holders

    The stock market is a part of the U.S. economy as you saw with the bearstern bail out.

    The average savings account yields barely keep up with inflation.

    Risk rewards relationship

    The market is beatable, if you have the resources and help.

    More disposable funds - more risk adversity you can take on.

    The bond market is argueably less speculative for the longer-term investor.

    More stability argueably less rewarding. Look at the amount to invest in a 5.25 govt. aaa issue.

    1mm to see return of 52,500 dollars yield.

    stocks because of liquidity and aggressiveness gains are more attainablel in less amount of time, but with substantial risks compared to that of fixed income.

    More time investment time horizon more risk should be able to tolerate. exact opposite of bonds
  • Because over medium to long periods of time the stock market goes up and people who are invested in it see their money grow by more than if they kept it in the bank.