Share broker is earning only very low amount in transaction
When a private limited company is becoming public limited company, that company is eligible to sell shares to the public, any public could buy the share. Who would be selling the share, company would not be in a position to meet a person and sell the share. At this time, licencijuotas brokeris are arranged by the company, a share buyer would be buying only through a broker, in case, a person is buying worth of hundred dollars share, he has to pay two dollars as commission to the agent. In case, the company is not interested to sell via broker, the company would advertise in all news magazine and other media about their share, in this condition, a share buyer would be in a position to buy his shares without paying any commission, even a person is paying commission amount for his purchase of share he is not going to pay not more than two percent. This revenue for the share broker is very small amount. At the same time, a buyer is buying ten thousand shares, this two percent would be in big amount, by this way the share broker could manage his office with staffs. Many cases, the without brokerage shares are sold via internet, but for the brokers, the bank would be paying transaction percentage, in some cases, the company would be interested to pay for the broker some amount. The normal broker in present days is not receiving any money from buyers. Because, through the internet the purchase is made by the share buyer, this buyer is receiving the document copy of the share through email, he is happy now because he hasn’t paid any commission to the broker. At the same time, risk factor for the share is always there for a share buyer.
In case the share buyer waits for more years he gets profits
In case, a share buyer is buying more shares, and deciding to use the profit money for children education, this is right way. In eighteen years, any company would be reaching to the top level at this time; a person who purchased a share for one dollar would be valued for hundred dollars. This is high profit; even in real estate this profit is not possible. Only through the share investments high profits are easily possible. This is not based on the luck; this is purely based on the trade of the company, and government encouragement. In many cases, the exporters are encouraged by the governments. In export government is earning high revenue, therefore, the government is offering some funds as an incentive to the export companies. In this way, a share holder would be happy for his investment. Long term investment would be fetching high revenue for the share holder without fail in many cases, a person is buying share and checking the share price only after twenty to thirty years. At this time, the growth is assured any company would be able to manage to lift the company this period of time. This is the reason a person is earning more money and becoming rich after buying the shares.
Consultation is necessary before investing money on shares
There are many share consultation services are doing services for the investors, this consultation services are recommending good company shares to the investors. Even they promise about the high profit for the share holders. These consultants are well aware of the all companies, and their market value, and when the company faced failure and when the company is faced success and after the success story how hard the company worked to retain its reputation in the share market. All these details are with them. This is the reason these consultants are able to provide guidelines to the public in buying the right shares. Of course on the mutual fund, the promise is kept for the investors. At the same time, there would be some conditions for the investors. Reading the document with care is essential before investing in the mutual funds. All these funds are rotated in business and the profit money is only offered to the investors.
Mutual bonds are sold at the low price to high price; any person who is earning low monthly salary also could invest in this mutual fund. At times, the price of the share would be increasing and the person would be able to receive high margin money for his very low investment. Same time, higher income group is always investing their money in shares and mutual funds. All these people are not bothered even if they face loss in the share market. Because already they are in rich position earning money from shares are additional money to them. This type of investment is freed from income tax, in all countries. This is the reason rich people are paying less income tax, and investing their money in the share market. Once the person is rich he has to fail his income tax once in six months, once he has invested his money in share market, he could show the original certificate and get benefit from the income tax. His earned money is safe, in the share market, even it fetches high revenue for him, this is the only reason all rich people are only investing in the share market. Even the companies are not targeting the poor people for their investment; a poor person could not invest not more than a dollar in the share market, at the same time a rich person could invest even ten thousand dollars in single payment for buying shares of the best company. The government is watching the share market and when the government needs fund, taking the funds only from the share market. As long as there is no war in a country, the share market would be in safe side, there would not be any trouble for the investors. However, no country is ready to fight with another country as on day now, because everywhere peace is found in all countries.