Direct equity investment is rewarding and risky. This involves huge complexity of information related to equity. Timing in market is very important; you might be caught if u mistime. If you time the market to perfection you can score a century with ease and get awesome rewards.
Growing companies consider shares as the main source of capital. This capital is invested in a company’s growth strategy. These shares are listed on a publicly quoted exchange and are traded at a market price. Investors pay for the share and pricing of it depends on the following factors:
- Recent company performance – as evidenced in its published financial statements
- Current sector performance compared to its competitors.
- Company future performance
- Stock ratings from analysts (buy, hold, or sell?)
- General market trend
- Disturbance in the system (terror attacks and so on)
- Uncertainty in markets