Stocks and Bonds
The profitability of stocks and bonds is determined on what the investor hopes to achieve from the investment. Stocks are generally bought in shares, and these shares represent parts of companies that are in many areas of Industry. Bonds represent treasury certificates and other government investing options, where through long term investments, a great return may be made on the money.
People will contact stock brokers for either investment opportunity. The stock broker will have a large client base of companies who are members of the New York Stock Exchange, Nasdaq and Nikeo Index. Some companies choose to go Public, in an effort to raise money to expand their businesses, and will routinely share a certain amount of stock.
No company will sell more than 49 percent of their holdings throughout the time that they stock in listed. This would give people controlling interest in the company, and few boards will allow that to occur, no matter how much money they need to raise. Instead, they may choose to make short term investments in government bonds to recoup some of the money that is needed to operate on a daily basis and money that is needed for growth and research.
The stock market prices fluctuates daily, and companies can have great success selling their stock for prices that they did not foresee at all, and may only need a week to end up with the amount of funds that they are hoping for. Careful investment strategies are scoped out on how to lure investors into buying stock in their company over choosing someone else’s stock.
Most stocks and bonds are held by the owner for over a period of at least a year. If they sell sooner, they will have a minimum rate of return on the money that they spent, and a better chance on making a larger profit with each day of ownership. Success in the stock market will depend on how well a person can read the tempo of sales occurring on the stock market, and judging the right time to sell, before prices start dipping below what they paid for the shares.
There are several ways that people choose to invest their monies. They can buy large company stocks, long term T-bonds, or treasury bills. They can choose to follow the entertainment Industry, and buy stock solely centered on companies that produce movies, and will generally go with record companies that have celebrity singing artists, that they enjoy listening to, under contract for several years.
by Melissa.Brown 19 years ago