Can Stock Market Make You Rich?

Yes, stock market can make you rich and can help you to attain your goals and dreams.It can help you to make you financial stable and to attain all the luxury items you want in your life.All you have to do is SWOT analysis, you have to look the strengths, weaknesses, opportunities and threats of a company before investing in that.Stock market is made for only those who have patience and faith in their decision because only in long term you can make wealth and can multiply your capital by several hundred or thousand times.

Why you should invest -

1. Wealth Generation-

By investing in stock market where you are getting average 15% return on your investment you can create wealth in long term investment. And its a compounding interest which seriously can make difference in the long term duration. Most of the billionaires made their 90% wealth in the last 5 years of investment.

2. Beat Inflation-

Inflation rate is 5-6% and by investing in stock market you are getting average of 15% rate on you investment thus you can beat the inflation in easy way and you can be 1 step ahead of inflation. Inflation is eating money of the common man and the best method to be in a better position is by investing.

3. Compounding Intrest-

Compound interest is the 8th wonder of the world where you are getting interest on intrest, in long term this thing drastically increase your capital over the time and make your capital to increase like 100 times.

You can enjoy this only when you give time to your investment and play for long term only.

4. Achieving financial goals -

Investment in stock market can help you to achieve your financial goals and it is the most important thing for an individual.Everyone wants to be financially independent and want to retire early, so in order to achieve this an individual should invest for log term and then he/she can achieve the financial goals.

What are the Important Things you must know before Investing?

1. P/E Ratio -

The price-to-earnings ratio is the ratio for valuing a company that measures its current share price to its per-share earnings. It is a very useful indicator to assess the relative value of a company’s share.

1. EBITDA Margin-

EBITDA full form is "Earnings Before Interest, Taxes, Depreciation and Amortization". It is basically used to calculate the profitability of a company from its operations.If a company has a high EBITDA margin that means the operating expenses of the company are not eating too much into its revenue.

1. Debt to Equity Ratio (D/E Ratio)

It is also an important parameter for the investor to assess how much the company depends upon the money borrowed from the lenders.Lower D/E ratio considered to be good.

1. Return on Equity (RoE)

It is basically the measure of a company’s net income divided by it’s shareholders’ equity.ROE is a term which is use to measure the corporation's profitability and how efficiently it generates those profits.The higher the ROE, the better a company is converting its equity financing into profits.

Note-

Stock Market Basic Course is specially designed for the people who want to start their learning from scratch. The objective of the course is to provide a basic level of Stock Market education by making it effective and engaging How to learn basics of stock market is a common question among us and we are providing one step solution for them.

My name is Anubhav and i write articles on multiple topics. Thanks for showing support.