Last time we discussed about the advantages or the reasons why you should invest in the stock market. We talked about the first three which are, potential for greater returns, part ownership of the company you are investing and belonging to a special group of people. This is the concluding part of this 2 part series. If you wish to view the entire article, check out my blog. 4.) It still one of the best vehicles of investment - Even if the stock market has its up and down moments, investing long term in the stock market will still give you one of the highest returns making it one of the best vehicle of investments ever. Returns in the stock market fluctuate yearly. For example, in 1986 the Philippine stock market recorded the highest return rate at 224 %. On the other hand the lowerst rate of return was in 1997 at negative 41 %. However the average return (within 20 years) is still somewhere from 24 % to 28 % per year. This means that the long term investor always wins in the long run. 5.) Investing in the Stock Market forces you to become financially literate, more aware of your environment and inspires you to learn. - When you invest in the stock market you are forced to read the business news and place significant meaning on major news headlines. News to you does not only become something to be discussed in the coffee shop but something that has an impact since you know it will affect how the market will behave. You will be compelled to understand terms that you did not even dream of understanding. You will become twice smarter than you were as you will keep on learning and reading in order to expand your knowledge. If you slept through your economics class before, your eyes will be wide open when you try to figure out what inflation means. You will be inspired to learn. 6.) Helps you more to become internet savvy. - It has been said that the development of mankind is divided into several ages. First we had the "stone age", then came the iron age and then the bronze ages etc. Afterwards we moved up to the industrial age. Currently we are said to be in the "information technology age." In this age, knowledge is power. This is not just considered as an adage. Rather this is the essence of the information age. Engaging in online trading will surely help you understand what this means. During the time that I was in college I wanted to invest in the stock market. The reason for my curiosity was because I always see in the movies how the traders are shouting buy or sell. Howver I did not invest during that time because of three reasons. First I lack the information. Secondly, I do not have the capability and thirdly I do not have the money to invest. In today's internet driven economy, information can be accessed easily through the world wide web.Trading is made much more easier with online trading facilities. As this opportunities are presented to me, I made it a point to start investing in the stock market. Now I do all of my trading activities online such as monitoring the news, buying and selling of stocks and transfering money to my accounts. Perhaps I will someday move into global stock market trading. Despite its complications, the principles in stock market trading is still somewhat the same. 7.) Investing in the Stock Market helps build the nation -This is the most noble objective and advantage as to why you should invest in the stock market. One of the main reasons why companies want to get listed in the stock exchange is that they want to infuse more capital into their business. The reason why they want more capital is they want to expand the business. More capital means more business, more business means more jobs, more jobs means more needs of the average Filipinos are being met. More business also means more taxes for the government. In a sense when you invest money in the stock market you are actually helping create jobs and at the same time more taxes for the government. This increase in economic activity helps build the nation. For sure these reasons certainly make a convincing argument as to why you should invest in the stock market.
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