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How to Make 1000 pounds a profitable Investment in UK Stock Market - Essay Example
Finance & Accounting
Pages 15 (3765 words)
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…
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. ...
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