Frequently Asked Questions
Most frequent questions and answers
The stock market, share market or equity market refers to the aggregation of sellers and buyers of stocks. It also refers to the market where the trading and issuing of stocks, bonds and other forms of securities takes place.
Stocks are shares of publicly held companies. When a company succeeds in the start-up phase and has made notable progress, the owners might wish to expand but are unable to do so due to their financial capacity. They can turn to the financial markets for additional financing. To do this, they need to split the company into shares and sell a percentage of these shares in the open market in a process known as an initial public offering or IPO. When someone buys a stock, they are buying a share of the company, which makes the person a co-owner of the company no matter how small his/her percentage is. Thus the stock market is also called equity.
Bonds, on the other hand, represent an instrument of indebtedness of the bond issuer to the holders. A government, corporation, or separate entity that needs to raise capital borrows money in the public market and later pays interest on that loan to the investor.
Stocks can be classified into different categories depending on the characteristics associated with the issuing company.
- Blue Chip:
A blue chip stock is the stock of a well established and financially stable company that has been in operation for a long time. Blue chip stocks are strong, stable and mature and this is a suitable investment for an investor with an i income objective.
This is the stock of a company with a strong potential for improving profits. The company earnings are growing faster than the economy, and thus the stock has a strong potential for exceeding the performance of the market.
- Emerging Growth Industry:
is the stock of a young firm in a new industry with good growth prospects, but also high risk.
The stock of a mature company with high dividend yield and few prospects for growth or diversification. These firms are usually utility companies but can also be blue-chip companies.
As an investor in any business, you need to understand your business acumen (strength). Are you a patient investor? Can you survive losses? These are examples of questions you need to answer when determining the type of investor you are. This will as well guide you in deciding where to invest your money.
You can easily find some short test online you can take to better understand yourself and in deciding what business strategy to follow. Or you can contact us on Facebook and we conduct a short quiz identifying your investor profile.
A stockbroker, also called a Registered Representative, investment advisor or simply, a broker, is a professional individual who executes buy and sell orders for stocks and other securities through a stock market, or over the counter, for a fee or commission. Stockbrokers are usually associated with a brokerage firm and handle transactions for retail and institutional customers. Brokerage firms and broker-dealers are also often referred to as stockbrokers.
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Commodity Price Risk:
this is the risk of a change in the price of a commodity and it can affect any business. Companies that engage in the sales of commodities benefits when there is an increase in the price of a commodity but suffers when there is a decline in the price. The increase in the price of a commodity reduces consumers spending on that commodity and this affects the economy in general.
the probability that can hurt a company through media stories. One bad news in the media about a company can greatly affect the company or worse, the entire sector. Although most blue-chip companies tend to stay away from bad news in the media. This is another reason why it is safe to buy blue-chip stocks.
the risk that the ratings on stock can change. Changes to the ratings of stock can impact on the market both negatively and positively.
the risk that a company might not last long. In general, not all companies live to be 100 years. Global competitions are a major problem that affects the existence of a company. The emergence of a new company with a similar product and a cheaper price can kick out an already established company if they do not review their prices.
Definitely, it is, the returns on the stock market are pretty stable nowadays. Thanks to our methodology you can be sure that you buy assets at the best value at minimum risk.
We recommend defining your investor type first and then according to your profile creating a balanced portfolio. You can use our online consultant to do all this.
You can use Notifinio as an addition to your current analysis and strategy. We’ll notify you when it’s a good time to enter the market for a selected stock.
So to start you need just open a brokerage account, register in our system and follow our recommendations enjoy the process of making passive money.
We use the sophisticated approach of using both technical and fundamental analysis to find stable and profitable companies. And then based on technical analysis and artificial intelligence we identify the best moments to enter the market and make a purchase of the securities.