Investment Rise: Nachrichten, Tipps, Analysten

• Common Stocks: This type of stock grants its owners the right to participate in the management of the company and receive dividends proportional to their ownership stake in the company.
• Preferred Stocks: This type of stock gives its owners preferential rights to receive dividends over common stockholders. Typically, preferred stocks do not have voting rights at shareholder meetings, but sometimes they may have additional privileges.

Stocks play a key role in the investment process, providing investors with the opportunity to invest their capital in companies and participate in their success. Initially, buying stocks can be seen as a way to finance the company, helping it to grow and develop. As a result, investors become partners in the company, sharing its risks and rewards.

In the context of long-term investments, stocks typically offer higher returns compared to more conservative investment instruments such as bonds or savings accounts. However, stocks are also associated with increased risk as their prices can fluctuate due to market changes or internal company factors.

Investing in stocks also contributes to portfolio diversification and risk management. Diversifying the stocks in a portfolio can help reduce overall risk and increase potential returns. This is especially important in volatile market conditions, where some sectors may experience downturns while others grow.

Overall, stocks are an important element of investment strategy, helping investors achieve their financial goals, whether it's providing passive income, preserving and growing capital, or planning for retirement.

There are two main ways: buying on the exchange and off-exchange. The first and most common way is to purchase stocks through a broker or online investment platform. Brokers provide access to various financial markets and instruments, allowing investors to choose stocks to buy according to their investment goals and strategies.

Another option is to participate in Initial Public Offerings (IPOs) of companies when they first list their stocks on the stock exchange for public trading. In this case, investors can buy shares directly from the company at the IPO price.

There is also the option of buying stocks through direct investments in companies that offer this option to their shareholders. This can be particularly attractive to those interested in investing in specific companies whose activities and prospects they find appealing.

Tips for Beginner Investors:

1. Learn the Basics: Before diving into investing, take the time to learn the fundamental concepts and principles of the market.
2. Define Your Financial Goals: Determine what you want to achieve through investing, whether it's saving for retirement, building an emergency fund, or growing your capital.
3. Develop an Investment Plan: Define your investment strategy, risk tolerance, and asset allocation according to your financial goals and situation.
4. Diversify Your Portfolio: Spread your investments across different asset classes and instruments to reduce overall risk and increase potential returns.
5. Invest in What You Know: Before putting money in, research the company or sector you plan to invest in to make an informed decision.
6. Be Prepared for Long-Term Investments: Investing is a marathon, not a sprint. Be prepared to hold your investments for an extended period to realize their potential growth.
7. Stay Informed About the Market, But Don't Panic: Stay informed about current market events, but don't let emotions influence your investment decisions. Panic and overreaction to market fluctuations can lead to unnecessary losses.
8. Start with Small Amounts: Begin by investing small amounts to familiarize yourself with the process and gain experience before risking larger sums.

Basics and Practice of Brokerage Account

What is the function of a brokerage account?

A brokerage account is a tool for trading securities and currencies on the stock exchange. It is opened with a broker who acts as an intermediary between investors and the market. Investors give their instructions to the broker, who then executes transactions on their behalf.

How to use a brokerage account to earn money?

To achieve this goal, one needs to actively participate in the market, conducting transactions with assets, as well as earning income from dividends and coupons. Beginner investors are provided with information on important aspects of investing, while experienced participants can deepen their knowledge in the field of financial investments.