If you have no investment experience and want to earn a fortune in the investment market, you need to know that one of the most basic tools in investment is stocks. I know that as a novice, you may not understand why so many people in the world invest a lot of money in the stock market every year. I will tell you in detail why investors are willing to take risks in the stock market in the following content. At the same time, I hope to help you get familiar with the basic principles of stocks so as to achieve the goal of investing and becoming rich.

There are actually many types of investment tools related to economy in the world, and almost every investment tool is being used by people to make money. As one of the most common investment tools, stocks differ significantly from gold, art collections and real estate in their standardization and many advantages.

The advantage of stocks is that investors can pay very little commission to reduce costs. You can experience the openness and transparency of the stock market by obtaining multiple parameter data of the stock in real time. In addition, you can easily complete securities trading with others through extremely fast trading methods. The employees in the stock market are very professional and have high professional quality to help investors achieve portfolio planning. From the development of these decades, stock investment has become one of the most important ways in the investment market.

Companies express their appreciation for their support by paying dividends to shareholders who buy all types of shares. Investors can share the profits of each period with many large companies by buying stocks. In addition, some companies may pay extra cash dividends to shareholders in order to maintain their loyalty and stabilize their investment enthusiasm. What you need to know is that there are no laws or regulations that require these companies to pay dividends. The profit sharing behavior of companies is spontaneous. Generally, companies will balance the proportion of dividends to make it possible to pay dividends when profits decrease.

You need to know that there is a type of stock called income stock that can help investors get a lot of dividend income. Investors tend to buy yield stocks to obtain super high returns and avoid putting all their funds in the bank. However, investors not only hope to gain wealth through dividends, but also plan to obtain additional funds through capital gains.

What you need to understand is that capital gains aim to gain profit margins by buying stocks at a low price and selling them at a high price. Some investors are used to buying the stocks of potential companies because these stocks are generally considered as growing stocks with higher and higher prices over time. It is obvious that these growth stocks may be difficult for investors to obtain dividends or dividends. The purpose of investors to buy them is to sell all the growth stocks at a high price at a future point in time to earn a lot of capital. Compared with the stable income of dividends, these stocks bring long-term capital gains to investors.

In conclusion, you can get a stable dividend income by buying shares just like the interest paid by the bank to you. You can also invest a large amount of money to companies with development potential to obtain rich capital returns. In addition, for a qualified investor, he is more likely to obtain profits by adjusting the portfolio by combining the above two categories of stocks. Therefore, the essence of buying stocks is to take certain risks to make use of investment to obtain income.

（Writer：Juliy）