The stock market is one of the primary sources of revenues used by individuals

or corporations to run or expand their business entities. Also, the stock market
offers a long-term investment opportunity to individuals and business entities;
because it provides liquidity that enables investors to quickly trade their
securities. Although investing in the stock market can be a risky undertaking,
the stock market offers a dependable performance of a diversified portfolio of
stocks.

As a result of these investing in the stock market has many associated

advantages that include: stock market investments have high returns, offers
individual a chance to participate in the building of the economy, they offer
long term and flexible investment opportunities, has little legal liability, and it
is a flexible trading opportunity. On the other hand, investing in the stock
market also has several disadvantages, although they are outweighed by its
pros.

The common disadvantages of investing in the stock market include stock

market investment have no guaranteed returns, have many associated risks
and costs, and it is a time-consuming undertaking. Therefore, although
investing in the stock market can be a very risky venture, because of its
numerous benefits, it is a worthy means of short or long term saving and
investing.

Advantages of Investing In the Stock Market

One primary advantage of stock trading is its associated with superior long-
term outcomes. Although it is very hard sometimes to predict the market price
trends over a long time, for example, more than one trading quarter, stock
market investments have high returns that can be informed of dividends or
capital gains, as compared to bond and certificate of deposits. This is made
better by the fact that the amount of loss from stock procured with cash is only
limited to the aggregate sum of the early investment.

This makes it better as compared to most leverage business dealings, where

the nature of losses accruing from such undertakings can exceed the originally
invested amounts. A second advantage of investing in the stock market is that,
through owning stocks, individuals are guaranteed a direct means of
participating in the building of their nation’s economy. This can be very
beneficial to an individual and, because of the numerous gains associated with
being key investors in a nation’s economy.

The third advantage of this form of investment is that it offers individuals long-
term investment opportunities (that are easy to access and exist), more so as
concerns saving for retirement. Although it is very hard for one to predict
correctly future changes of stock prices, the more the time individuals
participate in stock trading, the more the insights they will learn on how the
stock market operates and how to conduct their trading to avoid losses.
Further, stocks protect the passive stockholders’ liability beyond their reserves
in organizations.

On the other hand, because of the liquid nature of most stocks, their trading is
easy, more in times of extreme price fluctuations. This offers individuals a
chance to trade their stocks, depending on the prevailing market conditions

Disadvantages of Investing in the Stock Market

Although stock trading has numerous advantages, proper use of appropriate

economic policies can help to mitigate their effects. They include; to start with,
it is a very risky adventure, because of the volatility of market prices. Hence,
unless individuals make correct predication before trading in their stocks,
likelihoods of entities suffering great loses are high, as most factors that cause
these fluctuations cannot be control by an investor.

Secondly, although stock markets offer a good retirement investment

opportunity, it is not a stable from of investment for old age. Hence, it is
important for individuals to transfer their funds to safer solid investment, to
avoid frustrations after retirement. The third disadvantage of this form of
investment is that, it has many associate costs, right from the initial minimum
deposits to transaction levies charged by brokerage firms.
These charges may reduce the revenues earned from an investment hence, to
larger extent limiting the amount of earnings from stock trading. Finally,
investing in the stock market can be a very time-consuming venture, as it
requires frequent checking of one’s level of achievement

Mark Twain once divided the world into two kinds of people: those who have
seen the famous Indian monument, the Taj Mahal, and those who haven't.
The same could be said about investors.

There are two kinds of investors: those who know about the investment
opportunities in India and those who don't. Although India's exchanges equate
to less than 3% of the total global market capitalization as of 2020, upon
closer inspection, you will find the same things you would expect from any
promising market.

Most of the trading in the Indian stock market takes place on its two stock
exchanges: the Bombay Stock Exchange (BSE) and the National Stock
Exchange (NSE). The BSE has been in existence since 1875.3
 The NSE, on the other hand, was founded in 1992 and started trading in 1994

 The BSE is the older stock market but the NSE is the largest stock market, in
terms of volume. Both exchanges compete for the order flow that leads to
reduced costs, market efficiency, and innovation. The presence
of arbitrageurs keeps the prices on the two stock exchanges within a very
tight range

Emerging markets like India are fast becoming engines for future growth.
Currently, only a very low percentage of the household savings of Indians are
invested in the domestic stock market, but with gross domestic product (GDP)
growing at 7% to 8% annually for the last few years, though in the 6% range
for 2018 and 2019, and a stable financial market, we might see more money
joining the race. Maybe it's the right time for outside investors to seriously
think about joining the India bandwagon.