With more and more scandals and conflict of interests coming up in the stock market, the confidence of the investors is bound to go low. Most of the investors wonder whether it’s the right time to invest in the stock market amidst all this hassle. At the same time, it is highly essential for the investors to have a real life view of the stock market. Irrespective of all the real life problems that exist in the stock market, there are some common myths that rule the entire industry.
The first and most important of all myths in the stock market investing is the similarity that people finds with gambling. To get away of this misconception, expert like Ram Chary Everi believes that one need to review what actually it means to buy a stock. Generally buying stock means having ownership over a particular section of a company. That gives right to the investors to have claim on a certain section of the asset value as well as the profit that the company makes in the end of the financial year. In most of the cases, the investors consider the shares as a trading vehicle, and they tend to forget the fact that having a stock represents the ownership of that particular company as well. In the stock market, the investors are busy to assess the profit that will be left over for those have shares in the company.
This is the only reason why the values of the stocks keep on fluctuating. The aspects of the business keep changing in the market and along with it, change the scope of earning in future as well. Where the investors tend to make mistake is in assessing the value of the company which is never an easy process. There are multiple variables on which the value of the assets depends and they keep changing so randomly, that the trend cannot be ascertained easily. Keeping the short term focus in the industry, there might be times when the company faces no profit as it evaluates and looks forward to the future earnings. But in the long term aspects, the company is supposed to evaluate the current value of the profit that it will make.
The next myth that persists in the industry is the stock market being the place for the exclusive brokers and rich businessmen. There have been thorough research works done whenever similar claims have been made, but each and every time such claims have proved to be false. The prognosticators who have been assessing the market are mostly notorious and they tend to confuse the investors on a daily basis. Firstly the economic status of the investors is widely confidential and is not accessible to all. Hence these people just tend to make some unfair assumptions and try to confuse all.
There are no doubts that buying stocks and investing on them need considerable amount of money, but there’s no hard and fast rule that only the billionaires club can deal with them. Ram Chary Everi believes that anyone who has the capacity to examine the market trends acutely and make wise speculations based on them can feel free to invest in the stock market and make money out of it considerably.