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Reward and drawbacks of investing in Stock Market


Investing in stock market is just taking a risk in one way or the other, particularly in case you make out problems while undertaking to trade. The stock market can be said to be the place wherein selling and buying of shares take place. While going for the transaction, you can either make earnings or lose some money which depends on the price of your stock on that specific day.

It has come to notice that the Indian stock market shakes badly in case there occurs a minute change in the international market. You are required to ponder over the option whether you must make an investment in the stock market or look for something more safe and reliable choices such as real estate and FDs in the bank. The stock market is very volatile,and unpredictable nothing can save you if you are churned under its wheel of difficulties as you perform the trade. Gaining and losing is doubtlessly part and parcel of the stock market. If you still want to invest in the market go for the best stock brokers that are well known in the industry.

Benefits of investing in the stock market

1.Possibility of extremely good profits in short time

It has come to fore that individuals have made exceptionally good profits by investing in the stock market. Moreover, you can have a better opportunity of earning hefty returns as you decide on investing in the stock market. Consequently, as you make an investment in Indian stock market, however, you owe a lot of risk by doing trading. Also, you are having better chances of gaining good earnings in a short span of time.

2. Minority Ownership

It is a well-established fact that as you make an investment in the stocks of some of the renowned company, you happen to be the part owner of that company no matter the sum of money you put in whether big or small. By and by you can make your standing strong in the stock market by judiciously investing your wealth in various companies. Furthermore, it is easy to exit any time you desire.

3. Right to Vote

It is the minority ownership that offers you the right to give avote and make yourself heard in the corporate circles.

Drawbacks of investing in the stock market

1. Volatile Investments

In order to invest in BSE, it involves a lot of risks because the stock market happens to be volatile. It has come in the notice that the shares of a company get higher and plunge a number of times merely in a day. The fluctuations in the price cannot be predicted all the time,and sometimes it happens that an investor incurs a heavy loss given to the uncertainty and unpredictability of the market.

2.  Brokerage Commissions

The margin of profit is reduced every time the investor has to give commission on the sale and buy transactions to the broker.

3. Time Consuming

You have to fulfill many formalities while investing in NSE which take time.

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