Equities are commonly called stocks, and they are securities that offer shareholders an ownership interest in any public company. This interest is a real stake in the company, and in case you own all the business shares, you can control how it operates. The stock market means the collection of these stocks that can be purchased and sold by the public on several diverse exchanges.
Scott Tominaga – be aware before you buy Equities or Stocks
Scott Tominaga is an experienced financial expert based in Carlsbad in the USA. He holds over 25 years of rich experience in advertising, compliance, finance, investments, back-office operations, brokerage, and accounting. He graduated from the Arizona State College in enterprise finance and was a FINRA regulator in the early days of his career. Currently, he is working as the Chief Working Officer at PartnersAdmin LLC, a trusted name in financial services for diverse clients with headquarters in California, USA.
According to him, public companies issue stocks to fund their business needs. Investors who believe that the business will prosper shortly purchase these stocks released into the market. The shareholders receive dividends along with any applications in the share prices. However, if they make the wrong investment, they can even watch their money shrink or disappear in total if the company becomes bankrupt.
When it comes to investing in the equity/stock market for the first time, he suggests the following tips-
- Research and get educated about the Equity market- You need to know about the market. Start by visiting credible websites to understand the market and how it works. You can also become a member of online forums to connect with shareholders and professionals who are experts in the stock market. You can ask them questions and get valuable advice about investing tips in the stock market.
- Understand the difference between the trader and the investor in the stock market- There is a difference between the trader and investor in a stock market. The trader generally buys stocks and sells them in minutes or within a week. On the other hand, the investor buys stocks to keep them for the long term.
- You need to choose a skilled stockbroker for your transactions. Make sure you check the stock broker’s credentials and previous track records. It can be a person or a software- ensure the reputation is good in the market.
- Stay away from the stock derivatives markets as a beginner- this market comprises options and futures. Though it looks attractive with higher returns if you are a beginner, stay away from this market until you gather some experience with stocks.
According to Scott Tominaga, the equity market is not for everyone, so never rush. It needs knowledge, experience, and discipline to get started. Make sure you take your time to gather these traits before you take the plunge for success! At the same time, you can always rely on the experts for their advice and guidance.