RCS – Business Default

Although in view of the financial crisis, investing in shares seems to many to be a completely pointless activity, but some braver ones are making handsome profits. If you think that only the rich can afford to buy stocks, you are sorely mistaken.

In most cases, these are young, small companies that want to raise money for further development by issuing shares, or companies that are struggling to survive. If you are wondering why you should invest money in such companies, here are some reasons:

1. You can buy a large amount of shares with a relatively low investment. It is also easier to spread your investment over several different companies.

2. If one share of a company is worth 10 cents, you can buy as many as 5,000 shares of the company for 500 euros. And if the value of the share rises to one euro? What a nice income, isn’t it? (But the emphasis is still on ‘if’).

3. It is characteristic of cheap shares that their values ​​can change extremely quickly. It is not surprising if their values ​​double or even triple in one day. This way you can earn huge amount of money in a very short time.Of course, it is necessary to approach trading with such shares with even more caution, as information about companies is often scarce, and investments carry a higher level of risk. But due to smaller values, potential losses are usually smaller.

If we were to look at the global market, the Nokia share, which is currently worth 3.5 euros, would certainly be interesting to illustrate what we are writing about. An investor who invested $1,000 in Nokia last July when the stock was $1.69 has a little more than $2,050 today, an investor who invested the same amount in the much larger Apple (because that company’s stock is so high a stake of $1,000 is almost impossible), but today he only has $769 left.