Corporate Angle
Ms. Pradnya Santosh Koyande Portfolio Business Analyst, Bank OZK, Georgia
Pros And Cons Of Stock Market The stock market is one of the primary sources of revenues used by individuals or corporations to expand or run their business entities. It plays an important role in the health of the economy; the economy has to be strong for a country and its citizen to prosper. An economist uses something called the technical analysis method and people who use these methods are also called chartist because they use charts to find trends in the stocks. Stock exchange is an important constituent of capital market. It constitutes that part of the capital market which is concerned with purchase and sale of the industrial, government and other securities. One primary advantage of stock trading is associated with superior long-term outcomes. Although it is very hard sometimes to predict the market price trends over a long time, for example, more than one trading quarter, stock market investments have high returns that can be informed of dividends or capital gains, as compared to bond and certificate of deposits. This is made better by
the fact that the amount of loss from stock procured with cash is only limited to the aggregate sum of the early investment. Historically, stocks have averaged an annualized return of 10%. The stock market makes it easy to buy shares of companies. You can purchase them through a broker, a financial planner, or online. Once you've set up an account, you can buy stocks in minutes. Some online brokers such as Robinhood let you buy and sell stocks commission-free. The stock market allows you to sell your stock at any time. Economists use the term "liquid" to mean you can turn your shares into cash quickly and with low transaction costs. Although stock trading has numerous advantages, proper use of appropriate economic policies can help to mitigate their effects. It is a very risky adventure, because of the volatility of market prices. Hence, unless individuals make correct predication before trading in their stocks, likelihoods of entities suffering great loses are
K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y 19
