Stock Investment Career
What is the job nature of stock investment career? A stock is a certificate that you hold to show that you own a small percentage of a public listed company. As a stockholder of the company, you are entitled to reap a certain profit if the corporation makes profit in the business activities that it is involved in. The reverse is true as well.
It also enables you to have a say in the management of the corporation. However, to have a bigger influence, you will have to own a larger percentage of the stock. Every shareholder is entitled to attend the company annual general meeting that is held at least once a year.
Stock investment career is a challenging career in that you have to recommend what stock to buy such that they will yield good profit in the future. In making your decision on what stock to purchase, you must do a detailed analayis to ensure that your prediction about the market movement of the stock is as accurate as possible.
Some of the factors that are critical in the decision making process are...
- Profitability Check the profitability of the company. If the company has been making profit yearly and the trend has been increasing every year, chances are that it will continue to make profit. This company's stock should be a good investment and most probably is a blue chip stock.
- Competitors Is the company monopolised the market? If it is the only service provider or the only manufacturer of the product in this market, most probably it will continue to capture the growth of the market. An example of this could be a water utility provider. As the population continue to increase, the demand for water will continue to soar. As such, this company will continue to make profit as the consumers have no other option but to get the water supply from this utility company.
- Potential of Product Is the product offered by the company has potential for growth? Is it relevance to the current and future market? If it is, chances are that it will grow well and continue to make profit.
- Management Is the company managed by a good set of management team? If the management of the company has good reputation in the industry that they are in and has good track record, the possibility of it to profit in its operation is high.
Stock Investment Career Market Terms
- Bearish Market The stock market prices is on the declining trend. The composite index of the market is lower than the previous day or session.
- Bullish Market The stock market prices is on the increasing trend. The composite index of the market is higher than the previous day or session.
- Initial Public Offering IPO is the term used when the company is going public where the stocks are offered for sale in the market.
- Technical Analysis The analysis of the future stocks value based on the sales, assets, profit and potential of the company.
- Raiders An individual or a group of people who try to purchase more than 50% of the shares of the company in order to control it. Once they have the controlling stake, they can use the voting process to change the management of the company.
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