Why to invest in Stock Market

There are several reasons why you need to invest in stock market.

1. Historically, stocks have performed better than most other investments. This is a testament to the growth of the economy in the United States or India or United Kingdom or any other economically leading company today.

For instance in USA, from 1955 to 1994, the average yearly return of a share of stock was approximately 10 percent. This means that if $10,000 were invested in stocks in 1955, and dividends and capital gains were reinvested instead of kept, this $10,000 would have been worth about $444,000 by 1994.

Athens Stock Exchange increased by 142.49% between 1997 and 2003, compared to a return of 47.56% if your savings had increased in line with the deposit rate over the same period.

2. A share of common stock is ownership in a company. It entitles the holder to a claim on assets as well as a fraction of the profits that the company generates. Too often, investors think of shares as simply a trading vehicle, and they forget that stock represents the ownership of a company.

3. By investing, we increase the overall wealth of an economy. As companies compete, they increase productivity and develop products that can make our lives better.

4. Stock market is also a good platform for small investors. Small investors have an advantage over institutional investors because small investors can afford to be long-term oriented. The big money managers are under extreme pressure to get high returns every. Their performance is often so scrutinized that they can't invest in opportunities that take some time to develop. Individuals have the ability to look beyond temporary downturns in favor of a long-term outlook