Eternity Law International — News — Investments in stocks

Investments in stocks

Published:
November 28, 2018

To invest in stocks – this is today considered one of the most profitable variations of accumulation, safety and increase in monetary resources, of course, only on condition that the rules of the game in the stock market are fulfilled.

If you make a choice in the direction of self-investment of money in stocks, then it is important for you to first obtain all the necessary information and analyze it – for example, perform an analysis of macroeconomic information, study the financial characteristics of companies – issuers of securities, perform technical analysis, and so on.

Without a significant amount of information you will not be able to make a clear and competent investment.

Most potential investors do not have a lot of free time, professional knowledge and technical capabilities in order to independently engage in the right investment of money in stocks or securities and then later manage their personal investment portfolio.

To make investments in stocks of a company that are presented on the stock market, as well as potentially perspective, but still unrecognized, affordable and cheap, organizations that manage assets (AMC), offer people to invest in investment funds whose assets they masterfully and supervised.

Why invest in stocks – it remains always the most profitable way to save your financial assets?

The answer to this question is very simple. It’s all about inflation. Imagine a situation that you are simply saving money into a conditional “piggy bank”. With the passage of time, inflation begins to “eat up,” and the value of the saved finances begins to sharply “fall”.

And for this amount of money it is already impossible to buy what else could have been a couple of years ago. Inflation sharply reduces the monetary value, but at the same time, it can raise the cost of shares.

What is a stock? This is a fraction of the property in a joint stock company, in other words, it is some kind of property in the form of goods and services that this joint stock company offers or produces. If, under the influence of inflation, products and services rise in price, then, therefore, the shares of the enterprise that offers them in the trade market also rise in price.

The organizations that manage assets (AMC) ─ are professional participants of the stock market. They form different in their characteristics investment funds, or joint investment institutions. The purpose of creating such investment funds is very simple – in the future to continue to collectively and jointly engage in the investment of funds in stocks.

Investing money through joint investment institutions is a more risky and adventurous occupation, but, in potential, it can also provide the greatest return.

Risks in stock funds can be reduced through professional management and qualitative diversification, when an investment portfolio is created from a wide range of stocks and other securities, and the cost is compensated for by the value of other securities in the investment portfolio.

If you want to try to independently create such a portfolio of diversification, then you will need a lot of free money for this. At this time, asset management companies can manage large, multiple financial means.

Due to this, they have a chance to have the highest degree of diversification in creating equity assets. Thus, the implementation of the key investment requirement is achieved – “not to hide all eggs in one basket”.

It is very fashionable and prestigious to open and create equity investment funds in developed Western European countries, as well as in the CIS countries. Most of all it gained distribution in the East European states, in particular, in Hungary, in Poland and in the Czech Republic.

Assets of funds, as a rule, consist of their shares, and securities, as a rule, funds buy up and resell on a daily basis at the net cost of assets.

The greatest peak of popularity was open stock funds in the 1980-1990s of the last century. It was then that investors were fully able to enjoy all the advantages of a collective investment of finance. But in itself, the idea of ​​joint investment of money is far from new. It has been actively used since the eighteenth century.

For a detailed investment proposal, contact the experts of Eternity Law International.

You could be interested

Ready-made company in Madeira

Madeira is located on the West Coast of the Atlantic Ocean and has been considered a link between the EU and the US since the time of Columbus. At the moment, Madeira is a member of the European Union and belongs to the Schengen area. The jurisdiction has a good economic situation, and many foreign...

Why do you need a merchant account?

A merchant account is a specific account that allows you to make payments for goods and services directly on the website of the company. The organization that has registered the merchant receives its own identification code, which helps to allocate it among a huge number of enterprises on the entire planet. This code is present...

Offshore Trusts in Belize

Entrance corporations in other countrysides permit you to conduct certain blessings when doing interaction. This applies to any company`s type, including trusts. Today, trusts are created all over the world, and their main purpose is confidentiality and lack of public disclosure of the names of inheritors from the trust-activities. Therefore, they are often set up...

Business structuring: specifics of commercial organization

Considering largest enterprises in the CIS and the European space, it can be revealed that the majority of them are owned by foreign investors. Simultaneously, bulk of such organizations are located in Luxembourg, Holland, Switzerland, and also in Cyprus. This means that for certain reasons, at some stages of fulfilling commercial activities, the owners of...

Company registration in Costa Rica

Many entrepreneurs establish companies in this particular jurisdiction. The data of foreign investors is reliably protected due to the fact that Costa Rica has entered into an extremely limited number of agreements on the exchange of information. Income that comes to the state from other countries is not taxed. Tax fees are levied solely on...

PI license in the UK

Several types of non-banking firms whose main professional scope is provision of financial services exist. Operation of such enterprises and all deals performed by them as professional services are monitored by the state and laws of the jurisdiction in which organizations function. To conduct such activities officially, an appropriate permit from the regulator is required....

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360