Ownership interest in a corporation that represents a claim on its earnings and assets. It is important to keep long-term expectations in mind and not become overly concerned with short-term price movements.
Choosing Individual Stocks
Stocks can play an important role in a portfolio as a way to grow principal. Stock ownership can help you meet your financial goals and combat inflation. Stock market declines are common and occur without warning and end unexpectedly. Stock market returns can be heavily influenced by interest rates, political unrest, economic trends and news events. If you want individual stocks to make up a large part of your equity portfolio, 15-30 stocks should allow for proper diversification.
Tax Control
Potential to reduce your overall tax burden. You are in control of when you sell an investment and how you will be taxed.
Cost Control
Holding stocks for a long period of time can be a very cost-efficient way of investing. More trades mean more commissions.
Customization
The ability to be very involved in the decision-making process to determine which stocks to own.
What are the Major Stock Exchanges?
- Australian Securities Exchange
- Bombay Stock Exchange (BSE)
- Euronext
- Hong Kong Stock Exchange
- Japan Exchange Group
- London Stock Exchange
- NASDAQ
- National Stock Exchange
- New York Stock Exchange (NYSE)
- Saudi Stock Exchange (Tadawul)
- Shanghai Stock Exchange
- Shenzhen Stock Exchange
- Toronto Stock Exchange
What are the Major Stock Sectors?
- Communication Services
- Consumer Discretionary
- Consumer Staples
- Energy
- Financials
- Health Care
- Industrials
- Materials
- Real Estate
- Technology
- Utilities
