Tuesday, November 27, 2007

HOW TO MAKE BEST USE OF THE EMERGING STOCK MARKET

Ever since the trading in shares of financial ventures and the functions of Stock Exchanges commenced in the European countries, it was the monopoly of the affluent people and wealthy businessmen to invest in shares. As part of their deployment of wealth towards business purposes, to reap high harvests in return, they shared the capital needed for any business venture. Gradually with the advent of technological advancement like the internet marketing, most people realized that making investment in stock markets and securities is not rocket science and anybody with commonsense and prudence can do it for financial growth.

In developing nations like India, China and South East Asian countries of Singapore, Thailand, Malaysia, Indonesia and Philippines it took longer time for investment in shares to get popularized. Today the scenario obtaining in these countries is very well encouraging and each of these countries has its own way of psychological approach to this best branch of investment of money. More and more people are getting interested to know what it is to make an investment in shares of public companies, big and small, to augment their financial position by gaining good returns on their surplus money. Deposit in banks was the only way as a secure and safe investment of money once, but in the longer run people realized that this is a myth and the returns are too low and over a period of time the real value of their money gets eroded by soaring cost of living and inflation of economy. However the high volatility of share prices still keep people distanced from Stock Exchanges for fear that their investment will disappear totally if a slide occurs in a high magnitude.

But the fact is the other way round. A wise investment made in shares after thorough scrutiny of the facts and figures related to it can really offer very good returns in the longer run, which any of the other investment channels can never come near. It is true that people hear news that millions of money go down the drain in a single day, when the share prices come down crashing. It should be understood that the money stated to be lost by the share market investors as reported by the news is only a notional thing and not real money. For example a share bought at a certain amount of money, goes up in value when there is an upward surge in the "Bullish" market and only this additional value added up by the upsurge goes when the slide occurs (known as "Bearish"), the base price of the share remaining as it is. Again this fluctuation in price is caused due to so many factors and over a period only. If the investor selects a stock market and a share of a company with sound financial backing, these temporary fluctuations will never take away the real value of the share. Over a period of one year, it can be seen that the value has increased spectacularly from what it was a year ago. This is the real calculator for the growth of the investment made and surely this is the best way to make use of the emerging Stock markets. There are hundreds of websites online keeping their doors open to educate a novice investor and lead them by their hand to the miracles of Share Market business.

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