Major Reasons in Investing in Philippine Stocks
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In essence, stock is the portion of ownership of a general company. When you purchase stocks, you became a part owner of the company you bought. Stocks are being traded in a stock exchange or stock market wherein there you will buy and sell shares of a company. You must have a stock broker before you can trade stocks in a stock exchange. There you can open an online stock trading account so you can buy or sell stocks directly.
I known the word "stock" few years ago when I worked in a company in the Philippines. It was given to me by the company since it is one of the benefits for all the employees. The number of shares disposed to mer is according on the job position. That stock benefit is really a big assistance for me and my loved ones in terms of our financial needs in that time.
Investing in stock is a nice investment you can ever have if you only know when and how to invest in stocks. You must have also understanding, discipline and diligence in controlling your investment in order to have an excellent earnings from stocks. Bear in mind that you may only lose money in stocks in two events: at the time you buy and sell it.
Moreover, one good thing about investing in shares is that you can a greater return in the long period than other investment schemes available today. Long term investing in stocks is you will invest regularly to a hand-picked stocks for more than 5 years.
In the Philippines, blue chips are those stocks included in PSE Composite Index (PSEi). Based on the facts from PSE and BSP, the stocks put in blue chips will earn you a 14% average annual total return based on the previous behavior of Philippine stock market from January 1989 to August 2009.
In addition, for the last 20 years, investing in stocks earns you bigger average annual total returns than Treasury bills (T-Bills) and savings account with 11.0% and 2.3% average annual total profit, respectively.
Thus, investing in stocks, specifically blue chip stocks, is the best way in order to gain higher profit in stocks.
Article Source: Articlelogy.com
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