In order to avoid events that arise due to systematic risk these investors are advised to always use the funds to invest in the long term. Because of the lessons that have been systematic-risk conditions are generally not continued long, let alone permanently. Remember when the monetary crisis, the stock prices fell, but in a matter of four years now-shares are stocks rising hundreds of times before the crisis rather than price. This is a valuable lesson that needs to know. Investors always use to invest in long-term. Moreover, the behavior of a capitalist who infuse capital in the form of shares in the capital markets that have a desire to increase investment and provide benefits. Therefore only the long-term fund investors can optimize the objective.
As we know the investment shares have the potential advantage in the two (2) case, the division of dividend increases and share price (capital gain). First, Dividend is a company that profits distributed to all shareholders. Usually conducted once a year. Form of the dividend itself, can be a form of cash or additional shares. Meanwhile, capital gain, obtained based on the difference between the selling price with the price of shares purchased. Where is the profit gained when the stock price is higher than the price to buy shares. So investing in stocks have two components that are expected to investors in an investment, first an income that can be received periodically, such as a dividend. The second is the form of income, the difference comes from the increasing price of purchased shares, usually called the capital gain or capital loss.
Two expectations are 'capital' of a major investor in investing. Two expectations are also at a time can be an investor in the stock market. Therefore, in a down market, investors should increase funding so that it can get a stock-stock with cheaper price. In other words increasing the number of shares held. Why do so. Because psychological market always associated with something that is not real (intangible event) an event that is triggered by something that are not real, that the price fluctuation is not due to factors internal to the company but something more systematic.
With the increase of ownership shares in itself to increase the potential for good income and a capital gain dividend, as market conditions do not recover this systematic risk , is not permanent. So the strategy in the investment conditions in the systematic risk is very simple that investors should always use the funds long-term, not short-term funds. Moreover, the funds obtained from the debt.
As we know the investment shares have the potential advantage in the two (2) case, the division of dividend increases and share price (capital gain). First, Dividend is a company that profits distributed to all shareholders. Usually conducted once a year. Form of the dividend itself, can be a form of cash or additional shares. Meanwhile, capital gain, obtained based on the difference between the selling price with the price of shares purchased. Where is the profit gained when the stock price is higher than the price to buy shares. So investing in stocks have two components that are expected to investors in an investment, first an income that can be received periodically, such as a dividend. The second is the form of income, the difference comes from the increasing price of purchased shares, usually called the capital gain or capital loss.
Two expectations are 'capital' of a major investor in investing. Two expectations are also at a time can be an investor in the stock market. Therefore, in a down market, investors should increase funding so that it can get a stock-stock with cheaper price. In other words increasing the number of shares held. Why do so. Because psychological market always associated with something that is not real (intangible event) an event that is triggered by something that are not real, that the price fluctuation is not due to factors internal to the company but something more systematic.
With the increase of ownership shares in itself to increase the potential for good income and a capital gain dividend, as market conditions do not recover this systematic risk , is not permanent. So the strategy in the investment conditions in the systematic risk is very simple that investors should always use the funds long-term, not short-term funds. Moreover, the funds obtained from the debt.
2 Comments:
Nice, informative post. More post, pls..!!
thx stanley
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