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stock investments

Stock investments
The stock market is one of the tools of effective investment of funds. Many people fear belong to this place, because they consider it too risky, and overlooked that any significant revenue fraught with risk. You could even say that the more profit potential, the greater the risk. Less risky stock market investment is considered to be cash in bonds more risky - investing in stocks. However, the Forex market risks losing even more money. So what opportunities does investing in securities?
The most reliable and less risky bonds are considered to be government agencies, such as US Treasury bonds. The government uses such securities to raise capital to cover government spending. These securities are considered to be more reliable, however, and the profit potential for them rather small in contrast to the less reliable corporate bonds.
As already mentioned, investment in securities also involves the possibility of investing in shares. The investor gives your money to the company, instead of receiving shares, promise or obligation to receive dividends (ordinary shares does not always pay dividends, as opposed to the preferred shares). By investing money in stocks, one becomes an investor and shareholder that is co-owner of the company’s business. In overcoming a certain level of equity people allowed in the election of the Board of Directors, so involved in the management of the company.

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