Tesching Stock Investments + shares

Many people think that money is gambling on the stock. Capital is placed in factories, restaurants or boutiques, etc., is a legitimate business, they will mix up the stock investment and gambling. Gambling is 50, the chance of 50, for example, to buy large and small, is equally divided, but takes the whole dice, gamblers lose the opportunity to rate more than win.

Successful stock investor needs to consider a detailed and correct judgments. If you buy stocks to Macau as gambling, luck is bound to be a failure to analyze the pre-investment business, management capacity, the prospects of its financial position, profit-making situation in the past, the economic outlook and so on.

It involves the economic system, securities valuation, investment plans, the use of specialized skills, theoretical and practical co-ordination and so on. Investing in stocks is his business is his business to long-term struggle. Investment to be successful, is entirely a question of knowledge. Investment is a new applied science.


Function of stock

The stock market, which has contributed much to society. For example: the hands of 100,000 yuan per person is very limited. However, if tens of thousands of people out of 100,000 yuan per person listed on the purchase of new shares to the company to raise funds for the construction of power plants, you can collect tens of billions of dollars. Power plants will be built. Function of the stock market is "a view to pooling resources" to achieve the purpose of the development of large projects.

From 1987 to 1991 the five-year period the way to raise funds through listing in Hong Kong reached 143.3 billion yuan, equivalent to the construction of the new airport on Lantau Island in Hong Kong funding.

Behavior of the stock market, and promote economic growth and prosperity, can improve people's living standards. Each will have different income approach, it was a part of their income for consumption, some people will the rest of the charging of interest on bank deposits. Some people will be used to invest in stocks. Do not follow the beaten track, to make better use of the social environment, using the mind to discover and invent. Because stubbornly conservative and never will own and social progress.

Shares a long-term profitable

No investment experience of the people, when they talk about stocks, would say the stock is very risky to buy. This is subjective, because they have not been studies.

In fact, the stock market is indeed every three or four years there will be a crash. Over the past three decades, there were nearly ten times the fall. But every time their stock prices still higher. The Hang Seng Index by 70 points in 1965, rose to 9000 points in 1993, in other words, the past three decades, no matter when you buy stocks, and today, like you make a lot of money. See the following table:



History has proved that investment in Hong Kong equities, as long as they are long-term, there will be no risks, but also lucrative.


The benefits of stock

Chinese tradition is to bring up their children for their retirement, but such claims have not modern. Might as well be the prime of life savings to buy shares, the old stock when the interest and appreciation has been able to maintain living expenses. Early in 1979, alternate index is 500 points. In 1993, the Hang Seng Index is 9000 points, up 13 times. Many stock rose twenty-fold. If the 300,000 yuan to buy the stock at that time, there are six million dollars, and flat enough to lightly rest of their lives.



Chart: the level of the Hang Seng Index monthly chart. From December 1969 to August 1993.

The stock market has been in existence for 200 years. United Kingdom Stock Exchange was founded in 1773, the U.S. stock market was established in 1790. The Chinese Communist Party in 1990 also began the restoration of the stock market that the stock market has its function and benefits. Modern scholars generally agree that the economy: investment is greater than the savings will enable the national economy and prosperity, investment is less than savings, would economic downturn.

Sure the benefits of buying stocks, and we have to decide how to buy stocks, how to make investment decisions, this study is an investment. Research it is the most effective way, (referring to the shortest time), the most secure way (referring to funds can be recovered at any time), for the reproduction of capital in order to achieve the purpose of profit.

Successful investors, will definitely have a deep understanding of the stock. It is a science, and business, as do not know. "Cooked" that "there is some understanding of research, there are ideas and experience." Stock market losses, investors are a lack of insight into the sky.

Subsequent chapters, will help you through the principles of stock trading to increase profit opportunities.

Thinking

1. Only members of the public savings, do not use cash, what is the impact on society?

2. Before investing in stocks, what should be considered?

3. Chinese mainland enterprises listed in Hong Kong, Hong Kong and China have any effect?

4. What would you use your remaining funds?

5. Investment should be the scientific basis for those?

6. Examination of the origin of that investment.

7. Try to clarify the definition of investment.