Stock market tips that will help you manage your risk of losing money and increase your chances of winning.
Shares form part of the ownership of the joint-stock companies ‘capital, and each share represents an ownership document for each person’s share of the assets and assets of the company, and the shareholders obtain a set of rights, such as their right to returns from their invested money.
shares are also a way to subscribe to the companies’ capital by credit to have investors to participate and contribute financially; This leads to determining the nature of their ownership in the company.
How to sell shares
The sale of shares used by investors and shareholders depends on the presence of a person who is a middleman in the sale process, or by relying on personal experience and skills to implement the sale process.
Generally, shares are sold through resorting to financial intermediaries who have sufficient experience for the success of the sale of shares, and it can be applied according to for the following steps:
Identify and use a broker account specialized in selling shares; By comparing companies and institutions operating in the field of financial intermediation.
In order for the investor to obtain assistance to sell his shares, and to determine the nature of the financial investments in which he will participate in the future.
Obtain appropriate paperwork; It helps to track financial transfers or deposits that are directly applied when making quick cash sales.
Deposit shares for sale into the brokerage account; By asking the broker about the appropriate procedures for mediation, and it often includes writing the name of the investor on the share, and this name must be similar to his name on the certificate of ownership of the share.
The account number must be written on the certificate in its upper left section, and it is the investor’s duties to know the name of the company used in the process Mediation.
Study the chart of selling stocks to determine if the time is right or wrong to sell them when the time of sale is wrong, then the graph and the scheme of sale show a decrease and a rapid decline in the selling prices of shares, then it is impossible to sell any shares, because these business times are dangerous.
Selling the stock using a limit order or through the stock market: it is the last step in selling shares as it relies on the use of sales orders and contributes to the implementation of the commercial operations of selling shares.
For example, the sale limit order is used to set specific limits for the process of selling shares, especially in the event of a sudden decrease in its value.
This helps to determine a price lower than the price used in stock trading at the present time, and upon reaching this price, the investor’s shares will be sold.
Means of selling shares
There are a number of ways and means that help the owners of shares to sell them, and the following information about the most important of them:
Orders method: It is the main method used to sell shares. By using the sale orders that include all the orders used in the immediate sale of shares within the stock market, and among the most important of these orders is the limit order that is used to determine and choose the appropriate price to sell at the lowest limit, and the stop order, which is the one that executes the sale when the level is reached. Low share price.
Using a digital application: It is a modern means of selling shares. Where digital applications are used by traders and investors who want to sell stocks in their first experience, and these applications also mean that do not require financial commissions in exchange for selling shares.
Cooperation with a financial expert: it is the investor’s dependence to enhance his investment through a financial expert who helps him sell his shares, and financial experts can often sell the shares specified within one day; That is equivalent to 24 hours after investors contacted them and submitted requests to sell their shares.
Stock Market Quality Indicators
A set of indicators are used to measure the quality of shares traded in the stock market, including:
Stock market value index: It is one of the important indicators for making decisions about investing stocks, and this index is used to clarify the nature of the relationship between the share of each share of the rights of investors and shareholders at the end of the fiscal year, and the market value of each share, and it includes the rights of investors and shareholders the following: financial reserves, assets Intangible, capital, and profits realized after deducting the value of losses from them.
The profitability of shares: It is an indicator that is used to measure the share of the share within the financial revenues that accept distribution or in the net value of profits after-tax deduction, and this indicator is calculated by dividing the annual net profits after deducting the value of taxes from them.
Whether these profits are distributed in the form of reserves or cash on the total number of shares issued at a specific time, and it is important to exclude all shares not allocated to shareholders and investors from the value of net profits, such as bonuses issued by the company’s board of directors, and the shares for workers.
Return on Equity: It is the return resulting from a shareholder’s investment in shares; In order to achieve capital gains, and the returns it is expected to obtain, and when capital losses or gains arising as a result of changes affecting the value of shares, this results in a decrease or increase in the values of shares.
Profitability multiplier: It is one of the important global indicators that are used in testing and measuring the real value of shares, thus contributing to achieving the correlation between the annual profits of shares and their market value, whether these profits are classified as being partly distributed as cash or as financial reserves.
As this indicator is used to clarify and measure the number of times that profits are obtained during the year, whose value is equivalent to the value of each share’s price, and it is also used to indicate the years that the investor needs to recover the financial amount that he invested in stocks. Through the annual profits obtained.
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