Investment & Awareness
What is investment?
Investing in something worth buying because, it may be profitable or useful in the future. It is divided to the following:
1.Direct Investment: investing in real assets such as, real-estates & various projects.
2.Indirect Investment or Financial Investment: investing in securities such as, shares & bonds via the Stock Exchange. Investors wishing to deal in the Stock Exchange must invest on the long run. Their main goal is high return on long term investment not prompt profit based on speculations harming mainly small investors.
Successful Investment Strategy:
Investing in securities is an art & a science having rules & regulations. It requires thorough knowledge & practical experience to assist one in choosing what is better among the various available investment opportunities in the market. Key guidelines that may be provided here include the following:
First: Specify Financial Position: invest in excess sum, since investment in the securities market must be on the long run.
Second: Specify Goal: investment must reflect investor goals, in terms of expected return to achieve. Proper time must also be specified for this return.
Third: Extent of Risk Beard: the more the return is, the higher the risk is.
Fourth: Knowledge: thorough knowledge of available investment instruments is a necessity as well as, instruments information whether, general or financial or substantial. It is also, a necessity to be knowledgeable about reading the available financial information of traded financial instruments.
Fifth: Effort & Time: investment must be based on thorough knowledge. The investor must provide effort & time to search for information for intended securities to invest in & for a sound investment decision, information must be analyzed. If impossible, financial consultations can be sought from licensed entities or instead, invest in low risk instruments such as, bonds & investment funds.
Sixth: Reality & Diversification: financial markets are subject to rise & fall & returns cannot be achieved quickly. Therefore, long term investment protects the investor from daily fluctuations & diversification in securities & the period of time of investment decrease risks greatly.
Seventh: Know your Rights: the investor must know his granted rights by virtue of legislations & rules. He must also benefit from rights related to attending general assembly meetings, receiving dividends, on time subscriptions refunding & demanding rights.
For successful investment…. follow these steps:
1.Specify investment goal & required period of time.
2.Specify investment allotted sum.
3.Deal in Stock Exchange via accredited & licensed financial broker.
4.Investment is a contractual process that must be specified & written.
5.Knowledge about investment returns & risks from the financial advisor.
6.To make an investment decision, search for the needed information.
7.Invest in securities gradually.
8.Diversify investment in a number of securities.
9.Do not follow rumors & invest accordingly.
10.Pursue price movement in the Stock Exchange regularly.
11.Pursue economic indicators & connect these with Stock Exchange movement.
12.Pursue all issued regulations & instructions relevant to investing in securities & investors protection rights.
When dealing in the Stock Exchange….make sure of the following:
1.Financial broker is licensed by Jordan Securities Commission (JSC).
2.Have a reference number from your broker.
3.Have client ID notice.
4.Information of client ID notice is accurate & verified.