Share market is the platform where we double our money if we used the compounding rule very seriously. Many peoples buys the shares of well performing company then forget it for a long time so that money will compounded and doubled.
Why should we invest in share market?
Minimum cost to entry: You can inter in share market with very low capital i.e Rs.1000 in the case of Nepal. You can buy the ipo of good company to invest with the cost of minimum 1000 Rs.
Ownership: You
can be the owner of the company with minimum cost/share. When you invest in
share even with small amount, you become a part-owner of the company.
Easy buying/selling:
investing or trading in the stocks are easier now with smart phone or laptop
with internet connection. You can buy/sell share in just some click and get
paid within couple of days (in the context of Nepal)
Secondary source of income: you don’t need to
left your job for share market and generate well enough amount. Buying share
will give you a secondary source of income through their dividends and capitals
gains. You can buy share with your smart phone at lower price and sell them in
higher price after some time in your office hour.
Tax saving: paying
tax to the government with your money which you earned by your hard work is
another big tension nowadays.
No boundary of earning: Differ from traditional jobs with fixed salary you can
earn unlimited amount of money in share market. If your stocks perform well and
you used your selling and buying share in perfect time then your wealth can
grow unlimitedly over the period of time.
To grow your money: if we invest in a well performing company’s share in 2080
with the investment of Rs.100000 then company distributes 10% profit every year
then you money will be double in 6-7 years with total capital Rs.200000
It is important to keep up in the mind that
there is no gurantee of profit every time so we have to invest or Trade wisely.