If you're concerned about having enough money to live off of when you retire, or you simply want to save as much as you can, then it's an excellent idea to invest in the stock market. Stocks and bonds have the potential to increase your savings exponentially; and for many, it can be exciting to see invested money grow. Of course, in order to fully benefit from the stock market, you'll want to begin investing as soon as possible. For many career-goers and even everyday consumers with 9 to 5 jobs, this means setting up a 401-k plan. This is a special government-backed retirement fund that your employer will often contribute to. You can decide to invest part or all of this money into a mixture of low and high risk stocks, and any dividends (income) you generate from this type of investment setup is yours to keep - or perhaps use for future stocks.
Two important terms to know in regards to the stock market are common stocks and preferred stocks. You'll see this terms referenced often in a stock market newsletter and on financial blogs. When you purchase a common stock, you are investing in a company and receiving partial ownership -- in the form of voting rights -- in return. But dividend payments are not a guarantee. If you want to make sure you earn money from your invested money, choose a preferred stock. While a preferred stock does not give you voting rights within a company, it does guarantee dividend payments.
You can begin investing in the stock market with as little as 500 dollars, or even a little less. Of course, the more you have to invest, the more likely it is that your early investments will pay off and you'll see return dividend payments. Generally invested money goes directly to companies who are in need of capital in order to grow their products and services. By investing in them, you're helping them make more money, which in turn can make you more money.
Of course, not all stocks are equal in terms of how much they cost, how much they could potentially earn you, and what the risks are. If you're new to the stock market, consider a small portfolio that contains a mix of low-risk and high-risk investments. By mixing things up, you're less likely to suffer from losses, but at the same time you'll get a good feel for how stocks can play out.
Two important terms to know in regards to the stock market are common stocks and preferred stocks. You'll see this terms referenced often in a stock market newsletter and on financial blogs. When you purchase a common stock, you are investing in a company and receiving partial ownership -- in the form of voting rights -- in return. But dividend payments are not a guarantee. If you want to make sure you earn money from your invested money, choose a preferred stock. While a preferred stock does not give you voting rights within a company, it does guarantee dividend payments.
You can begin investing in the stock market with as little as 500 dollars, or even a little less. Of course, the more you have to invest, the more likely it is that your early investments will pay off and you'll see return dividend payments. Generally invested money goes directly to companies who are in need of capital in order to grow their products and services. By investing in them, you're helping them make more money, which in turn can make you more money.
Of course, not all stocks are equal in terms of how much they cost, how much they could potentially earn you, and what the risks are. If you're new to the stock market, consider a small portfolio that contains a mix of low-risk and high-risk investments. By mixing things up, you're less likely to suffer from losses, but at the same time you'll get a good feel for how stocks can play out.
