The stock market- a new way of investment for youngsters

By Dimpal and Pallavi Rana

The basic idea of trading which started when merchants used to assemble in the middle of a town to exchange and trade goods using money as a means has turned worth more than 37 trillion US dollars as of 2021. The stock market is like any other market you visit either you can buy or sell but the product is in form of stocks and is done digitally. Today’s youth dream about a life full of luxuries that can’t be met with the old way of a 9 to 5 job, here the stock market comes to attention. 

Companies sell their shares to raise money for their business which is later used for further investments for future growth or to pay off past debts. Putting their shares in the market helps the company to avoid unnecessary interest on their debts. Therefore, providing an opportunity to the public to own a part of their shares. There is no limitation on qualification to invest in the stock market. Investment is not about profit; it comes with risk and one might face losses. Reading some investment books and a little research would prove to be of great help to avoid such risks. In the past 2 years, as covid-19 hit the world, the free fall in share price was seen but the number of investors rose, among which millennials were in the majority. Since pandemic forced us all to sit at home and rely on technology more, it unveiled investment to youngsters. Earlier, investment was done with the help of brokers in which they get some percentage of profit but nowadays multiple applications are available where one can invest from the comfort of their home with no third-party involvement and can also track the growth rate of the company. The preferred company, amount of money, and the time period can easily be chosen with a few simple steps. If invested right, a huge amount of money can be made within a short period of time and one can spend it on their desires, be it an expensive bag, a sports car or a tour to the city of your dreams. But before pitching in for luxuries one should not forget the necessitates which include unpaid bills and debts otherwise one can be swamped.

Beginners should start investing with a small amount to test their acquired knowledge and to gain experience. The stock market does not always promise immediate profit, sometimes you have to wait for the good things to happen even if a fall is seen in the stock prices it does not mean a company can’t gear it up and it’s not always a good option to sell your shares in a panic. A good example can be this pandemic, though many companies faced losses but they will overcome the situation with time once this phase is over. The companies, which manufacture or sell products, that can never go off the market would be a good option to begin your investing journey also investment should be done in a variety of different areas to reduce the overall risk. Investing is not always about profit and loss it’s about the trust and faith you put into the company and yourself, though investing seems like a strenuous task, once you get a grip of it, it’s simple so rather than procrastinating you should start investing early.