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You are Here : Home > Investor Education

Why should I Invest?

Investing in the stock market is important for people that wish to build a healthy financial future. The main reason for investing in stocks is to make money. There are many ways you can invest but the stock market usually offers the highest returns.

Simply put, you want to invest in order to create wealth. It's relatively painless, and the rewards are plentiful. By investing in the stock market, you'll have a lot more money for things like retirement, education, recreation - or you could pass on your riches to the next generation so that you become your family's Most Cherished Ancestor.

What is a stock?
Stock is an equity investment. What does that mean for you? If you invest in a stock, you have an ownership stake in the corporation that issued it, or offered it for sale. The size of that stake depends on the number of shares you own compared to the total number available.
 
Why buy stock?
Ownership has its privileges
 
As a shareholder, you have some basic rights. You can vote for or against the candidates who’ve been nominated to the company’s board of directors. They’re the people who set company policy and choose the chief executive who runs the business. You can also vote for or against proposals the directors or other shareholders make to influence what happens at the company and how it is managed. You also have the right to sell your stock at any time — although you may choose to hold onto it for years.
 
Let’s be honest. Shareholder rights aren’t the reason you buy stock. The reason is to make money by investing in companies you believe will make money. In the language of investing, you’re seeking a positive return.