Have You Heard About These Advantages And Risks In Stock Market?

One of the advantages of stocks is that capital tends to be small. Many people like to play stocks because they only need to provide a smaller amount of capital than most other ventures. The percentage of profits that will be obtained from investing in stocks is quite promising. In the meantime, if you want to learn more about the stock market, you can read some premarket stock tips.

Just with a small capital, you can already get one share whose profits can be multiplied at a later date. The profit margin that can be achieved reaches 100 percent.

Stock investing is a very flexible activity. You can do it without having to sacrifice time from the main job.

Moreover, technological advances allow you to monitor stock exchange activity anywhere and anytime through the grip of a smartphone or laptop.

That way, you can still do your usual activities while making money from the investments you make.

When compared to other investment instruments, stocks have a relatively small percentage of taxes. Because only 0.1 percent of the final profit is owned by investors. This is the sixth stock advantage to consider

Besides, share tax is final. This means that investors no longer need to bother paying taxes when reporting the notification every year because the stockbroker will automatically deduct it when the stock transaction is settled.

Stock investment is a safe and very transparent business venture. Because all selling and buying activities are carried out in one scope, namely the stock exchange. This is a stock advantage that you need to consider!

In other words, all transactions that take place there are guaranteed security and transparency. So, as an investor, you don't have to worry about losing your capital because stock investing is very safe.

In simple terms, calculating a stock's profit is by subtracting the selling price of the stock from the price at which it was purchased. However, in buying and selling shares, the selling and buying fees set by the securities company must be calculated.

The profit from the sale of shares is usually called a capital gain.

As with profits, investing in stocks also has two risks:

1. Capital loss

The first risk that you may experience from investing in stocks is the opposite of capital gains, namely capital loss. This occurs when the selling price is lower than the purchase price.

2. Suspend

Apart from capital loss, the suspension is one of the risks of investing in stocks. So, the point here is that the stock exchange has suspended or stopped trading from trading.

That way, it means that investors cannot sell their shares until the suspension is lifted. The duration also varies. However, generally suspends last a short time, namely one trading day. However, sometimes there are also suspends that last for several days.