How to Invest Today

Basically, stock is the share of ownership of a public company. When you buy stocks, you became a co-owner of the company you bought. Stocks are being traded in a stock exchange or stock market wherein there you will buy and sell stocks. You must have a stock broker before you can buy or sell stocks in a stock exchange. There you will open a stock trading account so you can buy or sell stocks personally.

Six years ago I encountered the word stock when I was working in a California-based manufacturing company located in the Philippines. As one of the benefit programs, the company gave each employee a certain amount of common shares stock depending on the job position. As far as I remembered, my total benefits for the stocks given to me during my three-year stay in the company amounted to almost P50,000.

Stock has really big potential in building your wealth if you have the right knowledge, discipline and patience in managing it. Remember that you only lose in stock only in two events, when you buy and sell it. So as long as you know when to buy or sell stock, you will not worry on losing any money that you will invest.

Investing in stocks is a good investment because it will give higher profit in the long term compared to other investment instruments available today. When you invest in stocks for the long term, you will invest in well performing stocks called blue chips for more than 5 years.

In the Philippines, blue chips are stocks of multi-national companies that are basis of the performance of the stock market. Based on the data of BSP and PSE from 1989 to 2009, blue chips or stocks included in PSE composite index gave a 14% annual average return.

Additionally, investing regularly in stocks for the last20 years, gave a higher average annual total returns than savings account and Treasury bills with 2.3 and 11.0%, respectively.

In conclusion, stock investing for the long term is the best way to have a higher return for the money you invested.

Gily Tenorio loves blogging on finance, saving and investing. He loves playing guitar and gardening. He resides in Korea with his family. For more information on how to invest in Philippine Stock, feel free to go Financial Management, for free financial management articles on saving, investing and make money online.