Can banks invest in stock market?
Yes. But, they cannot invest the depositors money in the stock market. In the years since the financial crisis, central banks have leapt to the forefront of public policy making and have become major investors in stock markets.
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Investing in Emerging Market Stocks Emerging market stocks can play an important role in a diversified portfolio, in particular one with a long-term time horizon. Growth prospects for emerging markets are much higher than those for developed economies. Think of it this way: you are accelerating fro…m 0 to 60mph in an emerging market vs accelerating from 45 to 60 mph in a developed economy. That said, there are major risks associated with potentially high returns. As stocks are volatile as compared to bonds, so too are emerging market stocks to the stocks in developed nations. The U.S. and Europe, for example, have established infrastructures, stable governments and legal systems, and strong economies. Buying a large, multinational corporation based in the U.S. or Europe is relatively safe compared with emerging markets. Consider British Petroleum (BP), something you might know as the gas station where you fill up your tank. First off, U.S. and European consumers are relatively wealthy, so will purchase gas for their cars despite rising prices. And very importantly, the UK government is not going to nationalize (steal) a private company like BP, leaving the shareholders with nothing. BP is furthermore protected by a well-established legal and market infrastructure with many years of history. The countries where BP does its largest business are generally stable, meaning wars or political unrest won't disrupt its business. In Russia, an emerging market, this is not the case. Yukos, a successful private oil company, has become international news, as its leader was sent to a penal colony for 8 years for challenging the government's views. Currently, Russia is fighting rumours that it is considering oil nationalization. If, as an investor in emerging markets, you owned shares in Russian energy companies, this is very, very bad news. On the other hand, some emerging market stocks have outperformed similar stocks in developed countries by many many times. The Dow Jones Industrial Index is a composite of the largest U.S. corporations, and has returned 4% so far in 2005. A similar Chinese index, the FTSE/Xinhua China 25 Index, has returned 17% this year. However, as much as I like China's growth prospects, I would prefer to invest in a broader Asia index. China's trading partners, like Japan, will benefit from China's growth. However, if China goes to war with Taiwan, or backs away from its recent business-friendly evolution, Chinese stocks could suffer. Being invested in a broader index will provide a cushion. Another way to participate in the emerging markets is by a specialized mutual fund. Given the differences in languages, laws and even accoutning methods, it is a difficult arena for individual stock pickers to deal with, whereas the mutual fund firm either has, or can obtain, the required expertise. (MORE)
Depends on your capacity to absorb risk. Investment in stocks willyield better returns over a long period. The draw back of stockinvestment is either you need a good, capable advisor or shouldhave time to monitor your portfolio in a professional manner
Absolutely! Whenever you see any powerful solid stock at a 5 yr low it is a great time to invest if you can afford to invest for at least 5 years. The market on average returns about 8-12% for long term, 5-40 year investments, depending on how you invest. The best investors know that the best tim…e to buy is when the public is in fear of recession. The problem is, most people have less money to invest during recessions and they are afraid of losing it. Apart from individual stocks being at an all time low, the overall market is at a 5 year low, a great time to invest. As I stated before, if you need the money for Christmas shopping, its not a good time to buy, but if you need the money for retirement in 40 years (hopefully you're starting early). Than now is an absolutely perfect time to invest. Another thing, If this is a retirement account that you are setting up you will want to look into whether you should open an IRA or a Roth IRA. I wont get into the difference here but I am 20 years old and have an $8000 net investment (currently worth 5.5K due to the slumping economy) in a Roth IRA. I use vanguard.com but there are many sites to open up these accounts. I plan on investing again another 4000 into the total market this year. Don't open up an E*trade account these are meant more for people who day trade or buy stocks individually something that you wont want to do. As far as a personal tip. At this point in your investing career you want to probably open up a mutual fund type account (minimums range from 1000-3000) and put the total amount in a Total stock market index. This is your safest stock investment. It means you are buying a part of every single company that is publicly traded (in the S&P 500 or the Dow Jones depending). To check whether you lost or made money on any given day you can check to see if the overall market went up or down. Generally this type of investment will earn you 8% a year, CDs and money markets earn about 4.5%, and savings accounts earn much less. Some hedge funds will promise you returns of 12-15% but I warn you that for everyone of those who succeeds, one fails. Its better to get a return of 8-9% buying the entire market, then risk getting 3-4% for the same risk. Kindof rambled I give myself a B- in knowlege of Finance, but if there is one thing I am 100% certain on it is that it is a great time to invest. The S&P index may drop to 700 but in 5 years I can at least guarentee you that it will be higher then when you bought it at 980 (if you bought it today). And hopefully it will be worth quite a bit more. My money is on 1500. Good Luck (MORE)
This way... If you gamble with the stock market, you will "Probably" lose everything you have. But... if you invest wisely, you will "Probably" prosper, and so will your children. Cheers
people invest in the stock market to grow their wealth. There are many ways in life to make money besides an hourly wage. The stock market is a way to make money with brains instead of brawn. True it takes some knowledge to invest wisely, but with knowledge you can increase your income greatly. …To gain ownership on an organization/company and to make profits out of the upward movements in the price of a stock. These are the two main reasons as to why people invest in the stock market. (MORE)
Anyone can invest in the stock market ! I am a recent college graduate in finance and am amazed at all the things i was able to learn. I want to help others to know what i know and start benefiting from it!
Standard speculation exhortation is that you ought to put resourcesinto an expanded blend of stocks, securities, and currency marketstores. You need to purchase a broadened arrangement of stocks asindividual stocks are excessively hazardous. Most people have adificult time purchasing an appropriatel…y adjusted portfoilio ofstocks all alone. They will misbalance their portfolio bypurchasing every single little stock or all development stocks, orsome other misbalanced arrangement of stocks. Unless you comprehendwhat you are doing, it is best to purchase shared assets. I likeVanguard.com, other individuals like Fidelity, TIAA-CREF, and DFA.Purchase no-heap, minimal effort stores. In the event that youresemble a great many people you will put some portion of your cashforcefully in stock supports, and part conservatively in currencymarket subsidizes and security reserves. Vanguard has an on-linesurvey which will give you a thought of how to do "ResourceAllocation," deciding the amount to put in every kind of asset. In the event that your organization offers a 401K arrangement atwork, attempt to contribute the most you can. The cash developsassess free, and a few organizations will coordinate yourcommitment. Putting resources into a common asset IRA isadditionally a smart thought. In the event that you haveyoungsters, you might need to consider a 529 arrangement or otherschool investment funds arrange for that develops charge free. I like record assets. Due to their wide enhancement, you are lessinclined to have an emotional drop in worth. They additionally havethe most reduced costs. For stock assets, I would propose putting~70-80% of your cash in the Vanguard Total Stock Market Index Fund.what's more, ~20-30% in an outside stock file store. Be that as itmay, there are a wide range of conclusions out there on what thebest common assets are. Perused the connections beneath andstructure your own feeling. On the off chance that you have high-premium obligation, similar toMaster cards, it is best to pay this off first before attemptingthe vast majority of the speculation thoughts above. You ought tolikewise have 3-6 months of compensation set aside as a rainy dayaccount in a bank or currency market store before attempting moredangerous ventures. Trusting exhortation you get on Yahoo answers can be dangerous, soread these sites for additional data. In the event that youdiscover it excessively confounding, contact an expert monetarycounsel. They will charge you noteworthy commissions, be that as itmay. Keep Touch With us - @EquityProfit (MORE)
There are a few of us who has ever adopted a planned and systematic approach to investing. The approach has always been largely ad hoc in nature. For instance, most of us put an alarm to wake us up in the month of March every year so that we can primarily save taxes and consequently make good invest…ments so that it give us a tax break and would help us to reduce our tax liability. So let us see why one should invest in stock market . Why Do People Invest In Stocks? People invest in stock market for various reasons, however the two most common reasons are: 1. Making investments aimed at realizing his long-term financial goals. 2. Some investors will just make an investment because they see some of their friends investing in the market Therefore, in order to attain this, the key is to undertake a logical and a planned approach to investments. To adopt a systematic approach towards investing, an investor needs to undertake the financial planning exercise. Financial planning involves setting and estimating financial goals and managing your income, expenses and cash in order to be able to achieve these goals. Advantages Of Financial Planning There are many advantages of financial planning. When you create and adhere to a financial plan, it enables you to mitigate the adverse effects of rising cost of living. The cost of living has risen significantly over the years. Cost of living rises because of inflation. Our aspirations are ever increasing with the increase in consumerism. Today, we all aspire for a higher standard of living that encompasses more and better life style products. So, people invest in the Indian stock market to reap better benefits. Financial Planning is a step-by-step process and involves identifying your goals and placing a time frame and money value to them. It also involves in estimating your earnings/receipts during your lifetime. It is really important to understand your investment risk personality and then investing in the market taking into account your risk personality. It is also very important to review your financial plan. To reap greater benefits and to lead a good lifestyle is the main reason why one should invest in the stock market. ALTERNATIVE ANSWER . In general, stock investing, when approached conservatively and with the proper discipline, is a prudent approach to saving for the future, and for some, building wealth. However, as I write this it is November, 2008, the world's financial system is in a state of chaos. It is your responsibility, therefore, to approach the stock market with extreme caution.. The market today is so depressed compared to recent historical levels that many assume the bottom is near. Nothing could be further from the truth. Before the markets will recover, the economy must recover. Before the economy can recover, people will have to be put back to work. Before Americans can be put back to work, two things must happen -- the construction industry must recover and Americans will have to start buying more goods made by Americans. Before the construction industry can recover, the current inventory of houses, including foreclosed properties, will have to sold. Before Americans can afford to buy from Americans, import barriers will have to be initiated, either that or further economic decay will have to take place, and create a situation where even Walmart is driven out of business. Before the current inventory of houses are sold off, mortgage rates will have to be reduced to 1% or lower.. Realize that America exported its economy. There's very little left for Americans. Construction. Agriculture. Retail. Manufacturing and all those good jobs are gone. Or if they're still here, they're in the process of leaving.. There's a better then even chance the S&P will see 500 before it sees 1000.. Ever stop to wonder what might happen to the rest of the economies in the world without the engine of the American consumer? I have. And I fail to understand who's going to be lending America the funds to finance our national debt every year. And if there is a lender, at what interest rate?. If you're not frightened, you should be. (MORE)
To Learn about stock market investing you should have some of your basics about the stock market clear. To begin with you can learn what is a stock market, stock, trading, buying and selling stocks, stock broker etc. Read the basics of stock market investing on the net.
Yes - Under the supervision of an adult. You may need an adult to be a co-applicant while applying for the trading account and hence they are responsible for proper usage of that account.
niether. The bank gives your money to the government but they keep a little but the stock market is a gamble so it is like 50/50.
oh well let's see... about 2017 that would be a ok time.... well start in computers never go wrong there, but as of march 14th 2009. Microsoft in down -0.36 and Apple is down -0.42 points. Start with homes, you can make a lot of money there now! just don't get greedy or you could lose it all. so in… short... start with a consultant not wikiansers. emo skater boy OUT! (MORE)
it is a very wise dicision to invest in the stock market if you know what you are doing.
If you are 18 years old you can independently invest in stocks. If you are a minor, with the supervision of a guardian you can invest in stocks.
I don't remark on whether the business sector is fixed or not. Iwon't remark on individuals are moronic or not. I don't know how you resulted in these present circumstancesconviction and how about we not redirect but rather. Securitiesexchange, horse dashing, lottery tickets, wagering of allstructu…resâ¦ incalculable such structures are all near instabilityand arbitrariness. There are just prepared and guileless players in the businesssector. As some popular quote goes, a man's addition is someoneelse's misfortune. Securities exchange is extremely appealing, as are silver screens.Somewhere in the range of tend to just see the additions of fewprepared financial specialists. Some get notification fromcompanions and others that they earned substantial sums of money.Ravenousness is the driver. The individuals who truly picked up, could have made their homework and diligent work, which the blameless speculator helpfullydisregards. Normal slip-up is purchasing at high with avarice andtrust, offering at a low with misery and lost trust. This isolates the insightful and the moron. Nobody can really timethe business sector is the thing that I accept. System,persistence, exploration and boldness are the essential elementsfor good achievement. At the point when, which one, at what rateand the amount to purchase to what extent to hold and when to offeris the thing that to be aced. So, the few highlighted examples of overcoming adversity, avarice,restlessness and poor information, inclination to end up over nightgainers, lack of awareness of the diligent work by full timeplayers, and so forth are a few componentsâ¦ among these, I'd rateeagerness to be the topper. Keep Touch With us - @EquityProfit (MORE)
hai Evey Body; . first of all complitly know about company and products then now how is going and how will be go in future in the company products. all invester should be know all the details. then invest you'r part of cash.
In theory you can, the problem is that most brokers will require you to fund your account with a minimum amount of money, which is usually well above $1. Another problem is that when you buy or sell a stock you must pay a commission to your broker, that ranges between $4 and $15 per trade. This m…eans that when you buy you pay a commission and you do so as well when you sell. Therefore, there is nothing much you can do within the stock market with $1. (MORE)
A lot of people invest in the stock market. Some are: . Institutions & companies . Mutual fund houses . Individual investors (common man) . HNIs (High Net Worth Individuals) . Banks . etc...
Hi, readers! =) If you're interested to invest in the Philippine stock market, you can also check the Philippine Stock Exchange's Market Education website: www.pseacademy.com.ph Thanks!
There is no right or wrong "time to get into the stock market ." It is always time to invest, as long as you know what you are investing in. If you know that a company will soon be making money because of Christmas or another holiday, than of course you would want to invest in it.
Well, you might want to invest money that you don't need. I mean a small portion. money for your rent, groceries savings , etc.. shall not be invested in the stock market. most people invest small amounts so that can sleep well at night.
What are the advantages and disadvantages of investing in the stock market as opposed to keeping your money in the bank?
It is a trade-off of risk vs return. Money in the bank is generally considered risk free. (At least when the amount is small enough to be covered by a government deposit guarantee - most Western nations offer one, don't know about the rest of the world - so you keep your money even if the bank col…lapses. In USA the limit is currently $250,000 per depositor.) Money in the bank is considered safe, but you get a relatively low return (fixed interest) on deposits. Investing in the stock market has the potential for much higher returns, but it also carries a risk of losing money. This is a fairly fundamental economic law: Risk and return are inversely correlated - higher returns carry more risk. This is because the only way to get investors to risk their money - for example by investing in a startup company, with a 90% risk that the company won't survive a year - is to tempt investors with the potential for a higher return than they can get by putting the money in the bank. High returns with no risk is essentially not possible, as it would amount to "money for nothing". The higher returns associated with higher risk is the "risk premium" investors demand for risking their money. A professional investor specializing on startups will manage the risk by investing in maybe 100 startups: Perhaps 90 of the 100 will be a total loss, 9 will do OK, and one will do very well. The investor essentially bets that he/she will make enough money on the 10 companies that survive to cover the losses on those that didn't, plus some extra profit. Investors needs to decide for themselves how much risk they are willing to take for how much potential return, and how they want to manage the risk. Standard investment advice is to put some part of your savings in high-risk, high-return assets like stocks and some part in low-risk, low-return assets like government bonds. The part at risk should not be bigger than you can afford to lose. Other standard risk management advice includes diversification, spreading investments over several different areas so that potential losses in one can be offset with gains in another. In short, investing in the stock market promises higher return in the long run for * a higher risk * more time and effort in selecting investment candidates * more time and effort in picking risk management strategies (MORE)
To earn extra money, companies sell shares of there company called stock. For example, Walmart might sell one share of stock for $36 dollars. Basically, when you buy stock you are an owner of the company, there are millions of owners of corporations as the stocks are divided among millions of people…. With one stock, you would theoretically own about 0.00006% of the company, depending on how many total shares of stock there are. People invest in stocks by buying the stock for say $36, and if the company does well and makes money, the stock price might rise to $50. That person can then sell the stock they bought for $36 at the new $50 price and they would make a $14 profit. That's the basics of how the stock market works. (MORE)
Investment Banks are involved in the primary market by facilitating IPO's. IPO stands for Initial Public Offering. It is the process by which a company issues shares to the public to raise capital for their operational expenses or for expansion purposes. The investment banks help the company in comp…leting the IPO process. (MORE)
Why some people invest their savings in the stock market and others put their savings in bank accounts?
Some peaple invests in stock market because they wants to get huge dividend and also have capability to bear a loss due to uncertainty. On the other hand,some people wants to get good returns without any loss.this kind of peaple do not wantto bear any loss.
It is ideal because when the market is bullish the stock prices are going up. This means you invest and the probability that you will get a good return is higher. Nevertheless you should never just count on a bullish market. Cause even when most the stocks go up, there are always some that go down. …If you invest you need to do a thorough research or use a tool to help you. (MORE)
Kick start learning the basics of stock investing in a very easy tounderstand and simplified way through Stock Shastra which is aneducational initiative by Moneyworks4me, which also ensures retailinvestors gain from stock market and learn to invest in stocksdirectly, the sensible way. Though, Finan…cial markets are not easy tounderstand but there are plenty of resources on MarketWatch and therest of the Wall Street Journal Digital Network to help you there."Find an approach that mirrors your way of thinking. (MORE)
This depends on your location. You can check your local yellow pages for a personal stock advisor that you can meet in person. If you are looking for an online advisor there are also many available options.
NASDAQ and a mail site because they are both doing very well right now, and appeared high on the list of stock markets to invest in. so those two would be very good to invest money in.
yes there is, the most popular is probably Scottrade, tom buy and sell stock get on CNN and click on the Money tab to get the link and look at the stock market growth/decrease
The expected outcome is Profit. But, the actual outcome may be different if the stock selected was poor.
Yes it is, as there is no guaranteed income like interest which we receive on fixed deposits. Again it depends on which company stocks you want to invest in, if you are investing in any company whose products or services are haram then its better not to invest in those companies.
To make money! You can make money by buying good companies at goodprices, then holding onto those stocks until their prices have goneup. You can also make money by buying good companies that paydividends and receiving those checks every quarter. The price of a stock is roughly a measurement of how m…uch money thecompany that issued the stock can make. If that company is good atbusiness, the company will be worth more in the future and theprice of the stock will rise. Although there is no sure-shot formula has yet been discovered forsuccess in stock markets, but golden rule states that 'Be fearfulwhen others are greedy, and be greedy when others are fearful!' As my pointof view Stocks offers traders and investors opportunities forsuccess. This is not unique among securities, but it does makeequities a versatile investment.Long-term investors have foundopportunities for success in picking good companies and riding withthem until something changes the investor's opinion of the companyor its stocks. Investor invest in stock because they provide thehighest potential return. And over the long term, on other type ofinvestment tends to perform batter. (MORE)
According to the writings of John Bogle (who founded the Vanguard Group and popularized index investing), an index fund has low costs compared to other funds, has low turnover from frequent trading, and maximizes your potential to earn the full profit of the market itself. A good index fund, such a…s the S&P 500 index fund or the total market fund, is easy to buy and very easy to manage. They also perform well over time. (MORE)
Why do some people invest their savings in the stock market while others put their savings in bank accounts?
The stock market is a much riskier investment but potential for high returns on investment. Bank accounts (checking and savings) are insured up to $100,000 against loss by the FDIC and usually a lower return on investment.
The stock market has generally been a good investment. It goes up and it goes down, but in the long term it goes up. Lots of people have profited from their investments in the stock market, even though sometimes people lose a lot of money if they make a particularly unwise investment. Remember th…at people who have large amounts of money need to invest it in something. If they just keep wads of currency in their safe, it will gradually lose value due to inflation. Money has to be well invested, just to retain its value. (MORE)
The Investment U Plus website has information about stock markets and advice about when the best time is to invest. Citizens' Advice has a set of questions about stock markets, including how to invest and what to check before you invest.
The Street is a good source of information about learning how to invest in the stock market. Beginners-Investing teaches basics about the stock market.
Some alternatives to investing in the stock market incluse CDs, real estate, annuities, and bonds. Also, opening a savings account is a good option for some people.
Investing in stock of a company gives that company and allows them to grow. Which in turn turns out more products or services to consumers and opens up new jobs. Without investors companies would fail.
There's no general answer available for that since this mainly depends on the type of investment one would like to do. Just some examples: for retirements savings one would choose investments with lower risks. On the other hand a more speculative investment would allow higher risks. But there are se…veral more factors to consider before one could give a hint for stock market investments. (MORE)
The easiest way to invest on the stock market is via one's bank who will have a service for one to buy and sell shares, generally for a flat fee. Nat West and Lloyds TSB both offer this service and have simple explanations on their websites. Alternatively one could find a broker, ideally through rec…ommendation, to help them find the best investments. (MORE)
One may invest in the stock market by using the services of an investment broker. Services are provided by companies such as Franklin Templeton. One may also use Quest Trade to perform online trades.
Onc can learn about investing in market stocks through a registered investment counsellor. Also one can learn through family and friends, bankers you trust, and online through Investopedia, and Beginners- Investing.
Yes, almost any legal entity can invest in the stock market. The labor union has assets that can be invested in the stock market.
through our research we have determined that wealthy italian businessman don berlusconi, and son of former italian prime minister, silvio berluconi, does invest in stock and has done so for many years. he owns a large portfolio of various investments including a large selection of public stocks in v…arious corporations, nationally and internationally. don learned the stock investment business at a very young age from his father. don is said to be a genius whe it comes to investments and has had great success in his stock investments. he has the same ability when it comes to buying and selling real estate, which is also a part of his investment portfolio. he has an entire staff at his office in the cayman islands who handle his stock and real estate transactions daily. don makes all the stock and real estate decisions and puts his team to work, under his direction, to close the deals for him.he has bought many luxury properties sight unseen by him and has quickly sold them for a substantial profit.he flies his staff to look at the properties who than reports their findings to don, than don does his lengthly research and makes the decision. he knows how to whell and deal when it comes to real estate and stock . we have learned over the years more and more about this unique businessman and he never ceases to amaze us. on thing we know for certain is that don berlusconi should never be underestimated. (MORE)
If you have at least a five year time horizon, you will most likelymake money. The stock could do very well if interest rates move up.The stock will not do very well if interest rates stay at zero.Odds are that interest rates will eventually rise.
Investing in the stock market is not always profitable. If you findyourself in need of guidance as you start investing, you canconsider 3 things below: - Review your finances: The first thing you should do isdetermine how much money you have to invest - Educate yourself: Education might be the m…ost importantfactor in early investing success. This is especially the case ifyou haven't had much experience with investing prior to now. - Invest with a plan: It may sound obvious, but one of thefirst things you should do when you start investing is come up withan investment plan. This investment plan can be as simple or asdetailed as you want. (MORE)
Investing in stock market is not always profitable. If you decideto pour your money in it, you should consider to: - Learn about the various types of investments. You can searchhere: alpari.com/en/investor/ - Invest in a broadly diversified portfolio of low-cost ETFs(exchange traded funds) and index… funds - Don't try to beat the market; participate in it. - If you want to try investing in stocks, set aside a smallpercentage of your portfolio - and be willing to lose it all - To mitigate the risk even further, look into Motif Investing - When trying Motif, decide what type(s) of investing you'd like todo. - To select motifs to buy with your 'play' money, go withindustries or subjects you understand, or convictions you have. (MORE)
Try to watch the financial news channels as often as possible andread, read, read, financial publications.