SHARETIPSINFO >> Articles Directory >>Basics of short selling and how to earn money by selling stocks in stock market

 

It is a known fact that we make investments, be it in the stock market or in other schemes like for examples in mutual funds, only for the purpose of mobilizing our savings and at the same time earning a return on the investments in the form of either dividends or profits. However, the recent crash down that occurred in the world economy has caused severe damages to the people. It can be termed as the dark phase of the world economy which has paralyzed the world economy to a considerable extent. As a result of this dark phase the world economy has been compelled to take a downward trend due to which leave alone the profits, people are not even getting the dividends or returns on their investments. In other words, people are incurring huge losses and as such they are pulling out all the money that they had invested in the share market. As such it is now time that we start understanding the basics of short selling at the earliest so as to ensure that we do not incur any more losses.

 

Do not pull out all your money
It is advisable that you do not pull out the money from the stock market, because the more money you pull out, the longer would this dark phase remain in the world economy. Also it can be seen that the recent crash down in the world economy has resulted in severe losses of the people, so much so that today the term stock market is being replaced by the word “crash.” As such now days a statutory warning is being served to the investors in the stock market. This warning that is issued to the investors asking them not make any huge investments in the online stock market. This is because investing in the stock market involves tremendous amount of risks on the part of the investors. In addition, after the big set back, the investors are in not in a position to be able to bear more losses. Hopefully now the investors are realizing the value of knowledge.

The world economy is gradually recovering from this big blow or rather set back
However, of late, it has been seen that the world economy is gradually recovering from this big blow or rather set back. As such, the more prudent investors have been quick is grasping this opportunity and thus are investing in the stock market in leaps and bounds. So the time is not far when the stock market, rather the world economy will be back in action. However, after this blow, the investors should realize their mistakes and thus rectify them quickly. If they really want to earn profits and keep all the losses at bay, it is advisable they start by acquiring all the knowledge that is essential in the stock market. you cannot acquire experience, you will have to learn with time as such, start acquiring all the knowledge you can. Do not forget, that your real wealth is not the money you earn rather the knowledge that you acquire.

Stock and shares bear close resemblance with each other but are not synonymous with each other.
Thus, let us start by increasing our knowledge about stocks, shares, etc. Now though similar in meaning and use, stock and share do not actually mean the same thing. In fact, the two terms; stock and shares bear close resemblance with each other but are not synonymous with each other. They are similar no doubt but they are not the same. In fact, though both are generally found to be used together, but in practice they are poles apart. Basically, stock is a much broader concept than shares. Shares are smaller units that usually signify the rights and obligations of a shareholder. On the other hand, stocks refer to a collection of shares put together in a bundle. Shares can be both fully paid up or partly paid up, but on the other hand, to be a stock all the shares in the bundle, should not just be fully called up, but must also be fully paid up. Thus, these were the basics of short selling.

 

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