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Practical advice on stock market investments

The majority of stock market investments depend on the most well-known stock markets in the UK, the FTSE 250, FTSE 100 and the Alternative Investment Market (AIM). The last one is much more speculative and consists of smaller stocks than the others. Most people have several shares in their stock market investments portfolio this allows for a greater chance of a return and offers some small protection from losing everything.

Before you beginning investing in shares and making stock market investments you will need to do some serious research as well as consult the advice of an independent investment specialist. You will need to research the companies who you plan to buy shares with, as well as check out their past and current record for share growth. Picking successful stocks and shares is not rock science but it does take planning, analysis and a little bit of luck to choose the ones that will give you the best returns.

You should also work out a company's value to help you decide on whether their shares are a good addition to your stock investments portfolio. How much a company is worth is called Market Capitalization or cap for short, you work this out by multiplying the company's outstanding shares with the price of a single share. How safe your shares and stock investments are depends on the company's market value and their size. As a rule of thumb when making stock market investments, small cap companies are seen as a greater risk than larger cap ones. Your greatest and most useful investment should be in a reputable investment advisor and manager. Trying to make a return on stock market investments is much easier if you have knowledge, and when you are just starting out as an investor, this is something you will have to pay for until you know what you are doing.

 

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