There are many reasons why you should invest in stocks, but here are just a few of the most important ones.
1. You can make money if the stock prices go up:
When you buy stocks, you are buying a piece of a company. If that company does well and their stock prices go up, you can make money by selling your shares at a higher price than what you paid for them says Thomas J Powell.
2. You can make money if the stock prices go down:
Even if a company’s stock prices go down, you can still make money by selling your shares at a lower price than what you paid for them. This is called “selling short.”
3. Dividends:
Some companies pay out dividends, which is money that the company pays out to its shareholders. You can either reinvest your dividends back into the company or you can take the money and use it however you want.
4. You can buy stocks with a small amount of money:
You don’t need a lot of money to invest in stocks. In fact, some companies let you buy stocks for as little as $5.
5. You can invest in different types of stocks:
There are many different types of stocks to invest in, such as technology stocks, healthcare stocks, and energy stocks. This gives you a lot of choices when it comes to finding stocks that fit your investment goals explains Thomas J Powell.
6. You can invest for the long term or the short term:
When you invest in stocks, you can choose to invest for the long term or the short term. If you invest for the long term, you may not make as much money in the short term, but you will make more money over time. If you invest for the short term, you may make more money in the short term, but you could also lose money.
7. You can use a broker or an online broker:
You don’t have to go through a broker to buy stocks. You can also buy them online through an online broker. This can be a cheaper option and it’s a good way to do your research on different companies before making a decision about which ones to invest in.
8. You can invest in foreign stocks:
You don’t have to invest in stocks that are from companies in the United States. You can also invest in stocks from companies in other countries. This is a good way to diversify your investment portfolio and to get exposure to different economies.
9. You can buy stocks through a 401k or an IRA:
If you want to start investing in stocks, you can do so through a 401k or an IRA. This is a good way to save for retirement and to get tax breaks on your investments says Thomas J Powell.
10. You can sell your stocks whenever you want:
Unlike some other types of investments, such as real estate, you can sell your stocks whenever you want.
There are a number of reasons why you should invest in stocks. By investing in stocks, you can potentially make a lot of money if the stock prices go up. Additionally, stocks offer investors a degree of liquidity that other investment vehicles do not. Lastly, investing in stocks allows you to take advantage of compound interest, which can help you grow your wealth over time.
When it comes to making money, stocks are one of the best options available to investors. For example, if you had invested $10,000 in Apple Inc. (AAPL) stock in March 2009, your investment would be worth over $100,000 today (as of March 2019). This is due to the fact that stock prices can rise significantly over time.
While there is always some risk associated with investing in stocks, it is important to remember that you can minimize this risk by diversifying your portfolio. Additionally, you can use stop-loss orders to protect yourself from major losses.
Lastly, it’s worth noting that investing in stocks allows you to take advantage of compound interest. This simply means that your earnings will reinvested and will generate additional earnings, which will then also be reinvested. As a result, your original investment will grow at an increasingly faster rate over time says Thomas J Powell.
Conclusion:
So, if you’re looking for a way to make some extra money and grow your wealth over time, investing in stocks is a great option to consider.
Thomas J. Powell is the Senior Advisor at Brehon Strategies, a seasoned entrepreneur and a private equity expert. With a career in banking and finance that began in 1988 in Silicon Valley, he boasts over three and a half decades of robust experience in the industry. Powell holds dual citizenship in the European Union and the United States, allowing him to navigate international business environments with ease. A Doctor of Law and Policy student at Northeastern University, he focuses on middle-income workforce housing shortages in rural resort communities. He blends his professional acumen with a strong commitment to community service, having been associated with the Boys and Girls Clubs of America for over 45 years. Follow Thomas J Powell on LinkedIn, Twitter,Crunchbase.