How can I make money in the stock market?

How can I make money in the stock market?

Investors can earned in the stock market through any or a combination of the following:

1.  Getting Dividends

•  Cash Dividend - It is given to shareholders in the form of cash. It is computed by multiplying the number of shares held by the cash dividend rate declared.

• Stock Dividend - It is given to shareholders in the form of additional stocks. It is computed by multiplying the number of shares held by the percentage of the stock dividend declared.

2.  Capital Gains - Selling the stock shares you bought at a higher price. It is profits made due to an increase in the market price of a stock from the buying price.

3.  Stock Rights - Stock rights offering is the option given to the present shareholders to buy additional shares of stock at a price lower than its market price. 

Is there any risk involved in stock investing?

Yes, since risk is always a part of any investment. And because stock investment is the most volatile, a better attitude would be to limit and manage your risk. A maximum level of gain or loss should be set and calculated decisions should be made when this level is reached.

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