Investing in the Stock Market
Investing in the market is one of the options you have when managing saved money, but it is far from being the only one. You can work inside the bank system choosing any type of financial products such as traditional bank accounts or a fixed term deposit. But you can also choose to buy real state like houses or art pieces, or just keep your savings in safe place.
The exchange market is a private institution whose basic function is to channel savings from the economic units offering money (it can be you) to the economic units in need of resources (companies or public administrations) through established intermediaries, the only ones able to work in the stock market (stock companies and agencies).
The fact of investing in the stock market gives some guarantees impossible to find in the sale and purchase of real state, becoming the ideal option to get the economic advantage of your savings:
- Security and openness: stock markets are supervised by the Comisión Nacional del Mercado de Valores (Stock Market National Commission), which has the objective of keeping the openness and protecting investors. In order to do that it is entitled to obtain all the information it thinks is necessary about the participants.
- Liquidity: thanks to all the telematic means currently available, you will be able to sell your shares in seconds just clicking your mouse, something you could hardly do with a hose or a painting. Another advantage shares give is their divisibility. That means you can decide selling one, all of them or half of them, what gives your investments the quality of being easy to use.
- Diversification: buying real state it is almost impossible to find the proper investment diversification, that is why if the market price falls it would be impossible to reimburse it. On the other hand, the great variety of titles negotiated in the stock market allow to achieve an optimal distribution of capital, covering one risky investment with others.
- Profitability: it is a good strategy in the stock market, it can make you win huge amounts of money, although the goal should be obtaining long term profits, not letting yourself being influenced by sudden ups and downs in the price of your shares.
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