With Excon Fuji Securities, when you buy a stock you’re buying a small piece – or a share – of a company. Stocks are sometimes called “equities” because shareholders have equity (meaning ownership) in the company. We believe stocks are an important part of almost any investment strategy. As a stock investor, there are two basic ways you can make money:
The first way stock investors make money is through growth or capital gains. This means that if the stock price goes up, your shares are worth more. So if you sell them for more than you paid for them, you keep the difference, which is referred to as a capital gain. The price of a stock goes up and down, so if you sell your shares for less than what you paid for them, then the result would be a capital loss.
The second is by receiving a dividend from the company. Dividends are simply a little piece of the company’s profits, paid at regular intervals. Companies don’t have to pay dividends to their shareholders, but many times they do. It’s important to note that even companies that have historically paid a dividend can stop at any time.
The Role of Stocks
Stocks can play an important role in your portfolio for a variety of reasons, including:
– Current or future income needs
– Potential for growth of principal and accumulation of wealth
– Potential for offsetting inflation
Equities trading can be immensely profitable and many of our clients have turned what began as a hobby into a fully-fledged secondary or even primary income. It is possible to open an account with a broker who can execute trades on your behalf for a fraction of what it would have cost you a mere ten years ago. It is also possible to speculate on the prices of equities via spread betting or contracts for difference. These offer the added advantage of adding leverage so you can control a far larger tranche of stocks without actually committing funds to the transaction.
We can provide access to all the equity trading methods available including short-selling, put/call options and warrants. We can provide you with comprehensive analysis – technical and fundamental so you can select your stocks with confidence.