Trusted share brokers are required to invest money on shares
A buyer goes to purchase shares; he has to check the agency license before investing money in shares. In many cases, there are fake agencies are collecting money from share buyers, and not depositing the money to companies, all the companies check the money entries and finds there is no such entry for purchasing share this happens at many places. In many cases, the licensed agent is authorizing a person to collect money and trade share.
This kind of unauthorized person is not sending money to companies. This person is taking all the funds and disappearing from the trade. So the person should have to invest his money only with geautoriseerde broker, this kind of broker is genuine broker and he has got framed license copy at his office. He would not be demanding more money and he takes only two percent money for each transaction. This amount is small amount, but the government authorized to take only two percent from the public, this is the only reason the agency is collecting only two percent margin from each sale.
The office would be maintained with the qualified staffs with the genuine trader. The trader in some time would be having his website, this is convenient for the investors to visit the website and pay the cash. However, demote account from government bank is necessary because, the money goes through only from the bank to the companies. All the companies are collecting their money only through the bank. Even the broker is receiving his commission only through the bank, after depositing one month account; the trader would be getting his total commission.
The total commission would be huge amount because; all types of buyers are received by the trader. In some case, a person would be buying only ten numbers of shares. In some cases, the person would be buying one thousand numbers of shares. Put together the agent is earning money from the bank as commission.
Share trading fetches money for smart buyers
Share trading is useful only for smart buyers. These smart buyers are not buying shares with the name of the company, they are checking the company in deep, further they are watching the account statements of the company, in case the company is profitably running for three years or more than three years only than these customers are buying the shares of those companies. Even the oil companies are facing loss, when the oil price is increased.
Once the oil price is increased, not all buyers are buying and the oils are stored in go down. Of course value of the materials in the go down would be more than million dollars, but not use, because all these oils should have to be purchased by the public, only than the company would receive profit, just retaining huge amount of valuable oils at the go down is not in trading, it is only liquid asset. The main asset is earning money; the earned money should have to be in substantial only than an investor would be interested in investing money on that oil company.
Out of ten oil companies only two would be flourishing other companies would be facing loss, even the salary must have not cleared by those companies to the workers. Similarly not all the information technology companies are flourishing and many companies are closing down because of no sales, no further orders for them. Of course, a leading information technology company would undertake the companies facing in loss, at the same time, investors who invested in those bad companies would be facing loss for their share purchase.
Investing money on export companies would be worth
Investing share amount on export companies would be worth, at the same time, those companies should have to export rich countries not for poor countries. Currency value should have to more; all these are very important consideration before investing money on export companies. For an example a company is producing some industrial products, and selling to America and Germany this kind of company would not be facing loss, because these countries would be sending money to the seller immediately. These companies even arrange the pay to delivery basis.
That means once the goods are sent to the country, immediately seller would be receiving money directly from these countries. As these countries are very rich, further industrial products are required for production, this is second consideration. So investing the export companies are bringing profit for the share holders. At the same time, the product exported to a country should have value. In case, a company is selling flowers, and the country gets in late in delivery, all the lowers would be waste, therefore, the company cannot earn profit for the sales; this kind of company would be going down in the share market.
Similarly food products are exported means, the investors should have to be very careful, even delay in the delivery would bring loss the company, naturally the share value would be in down. This means a person purchased a share worth of ten dollars would be facing eight dollars loss. At the same time, exporting ingredients for the food would be profitable, because, ingredients would not be waste at any cost and even delivery could be made easily within a week time by shipment.
However, economists of a country is watching all share trading and reporting to the government, the government is taking immediate action to increase the share points in the week’s time. Of course one or two days, the forex would be in down trend, due to rapid action of the government it would be adjusted and the points would be increased and green color would be found in the forex points. Of course, investing money with the poor countries are always rick because, there is no buyer for the poor countries. Only hard work makes the poor country to rich status. Once the share buyers are more and more even the forex points would be increased and share income would be profitable for an investor who has invested his money on any company.