How to invest in equity shares

The most important factor when investing in stocks is to choose an asset 'winner' at the time of purchase, but above all, does it in the right time.

To invest in stocks should only go to our bank and ask you to buy the shares you want. The bank also to deal with the acquisition of values will also be responsible for the safekeeping thereof. This process in itself does not pose any difficulty, the complexity of the matter is properly chosen the value or the company you want to invest and do it at the right time so that the investment will be profitable.

What are the actions of a company?

• Each share represents a portion of the company. When investing in stocks, we are actually acquiring the company. We became owners of the same by a certain percentage, depending on the number of shares to buy. As owners of the company will participate in the benefits it obtains.
• We must not forget that the results of a company can be positive or negative, ie you can make a profit or loss. When benefits are obtained, some of these can be distributed to shareholders as dividends, but not always, sometimes the money can be reinvested in the company according to the decision of the majority shareholders.
• The shares are bought and sold on the stock exchanges. People who want to invest in stocks come to the stock market to acquire them at a price set at the time as a function of supply and demand that has titles. They can also place a market order to buy the shares at a price other than currently listed, which is executed if the share price reaches the price fixed.

On what base the investment decision

• To invest in stocks is essential to be clear which company you want to buy and at what price. For this there are various methods that help us make this decision. This is known as stock market analysis, which we can do it ourselves or seek expert help if you do not have the right skills.
• There are two major branches within the market analysis: technical analysis and fundamental analysis. People, who want to invest in stocks using first method, are based exclusively on the analysis performed by the graphics of the share price.
• Fundamental analysis is an exhaustive study of the company in question, analyzing its accounting, its production structure, their area of ​​business, your market share and economic circumstances of the moment.