CONCLUSION

In the Last it can say that there’s a huge difference between the gains
and losses you can make by investing in the stock market as compared to
your returns from bank fixed deposits, insurance, mutual funds and other
investments. In stocks, you can make unbelievable money -- it’s not
uncommon for people to have doubled their money in the last one year. On
the flip side (there is always one), when the markets crashed in May, many
people lost more than a quarter of their investment. Compare this with your
bank fixed deposit. Your FD will only fetch you around five to six percent
per annum, but you can be sure of getting your money back. When you put
your money in a bank deposit, you loan the money to a bank for a fixed
return (rate of interest) and a fixed tenure (number of months or years). At
the end, you get back your original amount and you are paid interest on the
same. When you invest in stocks, you do not invest in the market (despite
what you think). You invest in the equity shares of a company. That makes
you a shareholder or part-owner in the company. The good news is that
since you own a part of the assets of the company, you are entitled to a
share in the profits those assets generate. The good news is that since you
own a part of the assets of the company, you are entitled to a share in the
profits those assets generate. The bad news is that you are also expected
to bear the losses, if any. Now, if you are a shareholder, there are two ways
you can benefit from the profits of the company: capital appreciation or
dividend.