StudentShare solutions
Triangle menu

How to Make 1000 pounds a profitable Investment in UK Stock Market - Essay Example

Nobody downloaded yet

Extract of sample
How to Make 1000 pounds a profitable Investment in UK Stock Market

b. Acting on rumours knowing that it is in fact a rumour. c. Buying Dividends for long-term investment in stock market. It is a stable and less risky way of earning profit. d. Opening an account with a broker. e. Investing in Penny stock to earn profit. Method 1 Basic Plan: The first method is to look for companies that have undervalued ratings. This method does have it perks considering that undervalued firms have a lot of value, of which general public is unaware, due to rating agencies (Graham, 1985). Now the first scenario is an investor having ?1000 and he or she has to make money through investing it in stocks looking for undervalued companies. The first reasonable thing that the investor should do is to look into companies, which have the least value on the FTSE index. For example, the investor comes up with four companies, whose stock value is ?2, ?3, ?3.50 and 3.75. Initially, I will analyse why that particular company is undervalued, does that company have large debts that it needs to pay, or the company has a record of bad investments or if the company was indicted in law-suits involving fraud etc. If the company has large debts, the investor shall see the prospects of that company paying off the debt while pragmatically and logically calculating, the duration in which the company will be able to pay its debt. If the investor wants to earn the money quickly i.e., in a week and he or she is able to find a company that can pay off its debt in two weeks, it would be best to buy stock of that company. And if the prospects of paying debt are low, the investor shall not invest in that company because of the obvious downfall state of the company. One thing that shall be kept in mind that, one must not sell all the shares if there is a slight rise in stocks because of the thought about, being on the safe side. One must project a slight confidence by observing the attitude of the market towards that company if that attitude is confident towards it then there’s no need to sell the price and if the attitude contains lack of confidence, then one must sell shares at the price offered as earliest as possible, if one wants to liquidize stocks instantaneously. Another way is to invest it, in two or more companies at a time. The approach shall be the same as above and the reason to invest in two or more companies at a time; is unreliability in any one company. It’s just an alternative because companies are being kept undervalued for specific reasons. Sometimes the reason is right and justified in view of the person who wants to invest, but not always. This is a good way to earn money, but the chances of earning money quickly are very bleak. Drawbacks: The biggest risk involved in this kind of investment is, in case undervalued company gets further devalued because in such cases the value of stocks further decrease, resulting in loss for the shareholders. Another drawback of this plan is lack of experience of the investor who is investing the amount of ?1000, which is a high value. It is very important that a person should be an experienced investor person while investing because then there might be rational discussion taking place instead of decisions made on gut feeling. Another risk here is of fraud and being conned, which is very common for new investors. A new investor might get caught because of his or her ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“How to Make 1000 pounds a profitable Investment in UK Stock Market Essay”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/67900-if-you-had-a-investment-of
(How to Make 1000 Pounds a Profitable Investment in UK Stock Market Essay)
https://studentshare.net/finance-accounting/67900-if-you-had-a-investment-of.
“How to Make 1000 Pounds a Profitable Investment in UK Stock Market Essay”, n.d. https://studentshare.net/finance-accounting/67900-if-you-had-a-investment-of.
  • Cited: 0 times

Summary

Introduction: - Investment in stock exchange is a risky business. If a person has ?1000 and he has to invest that money in stock exchange to earn a profit, he has to research the inclination of the market and select one maximum paying investment method. Now, five methods are listed below despite, being hundreds of other, which can be utilized to earn money in stock exchange with good results , but none of them is risk free…
How to Make 1000 pounds a profitable Investment in UK Stock Market
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"How to Make 1000 pounds a profitable Investment in UK Stock Market"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Investment in an Uncertain World
In a closed economy, Y = C + I + G, where Y stands for National income, C for consumption, I for investment or gross capital formation, and G for government (or public) expenditure. In this equation, because there is no foreign trade, GDP = National Income.
8 pages (2000 words) Essay
Stock Market
Name: Instructor: Course: Date: Stock market summary essay Introduction This essay seeks to relay to the reader a comprehensive summary of a stock market case. The case involves an investor who has $1 million and seeks to invest in various stocks of his choice.
2 pages (500 words) Essay
Stock market
The stock market can be very profitable but can also lead to losses. The stock market is very profitable creating a lot of interest to many people and though it may result in losses, there is a lot of benefit to the institutions selling their stocks, the individual that buy it and the governments of the various countries, making it one of the most popular earners.
3 pages (750 words) Essay
Stock market
Commodities are traded in commodities markets, with derivatives are traded in a diversity of markets. The size of the worldwide 'bond market' is estimated at $45 trillion. The size of the 'stock market' is estimated at about $51 trillion. The world derivatives market has been estimated at about $480 trillion 'face' or nominal value, 30 times the size of the U.S.
10 pages (2500 words) Essay
Stock Market
If a person uses such information to buy or sell a company’s shares in the stock market this could amount to insider trading and which is a highly prosecutable criminal offence in the UK. (moneyextra.com, 2007) For fair treatment of
5 pages (1250 words) Essay
Stock Market - Math/Investment Paper
It is traded with the symbol name of “SIX” in NYSE. Cedar Fair Entertainment Company owns and operates amusement and water parks in the United States and Canada. It was founded in 1983 and is based in Sandusky,
3 pages (750 words) Essay
Investment in an uncertain world
In this equation, because there is no foreign trade, GDP = National Income. 1b. Now imagine an unexpected shock to the economy (not predicted
8 pages (2000 words) Essay
If you had a investment of 1000 how would you go about turning it into a profit on the stock market
In this paper, pros and cons of all these five methods will be discussed and in the end the best method out of the all five and the worst of all
15 pages (3750 words) Essay
The stock exchange market in the UK

The author states that it is commonly believed by economists and the common public that the London Stock Exchange is as near to a perfect market as there can be. The basis for this belief lies in the fact that the stock and share prices in the Exchange are extremely susceptible to the factors of supply and demand in the market.

10 pages (2500 words) Essay
Determining a profitable investment
Using scientific psychiatry tools such as Candlestick outline configurations, an entrepreneur can look forward to market reverse and market trends before they happen. In long term
2 pages (500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic How to Make 1000 pounds a profitable Investment in UK Stock Market for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us