5 Reasons Why you should start to Invest on Stock Market

Mind Entrace- Oktavianisa Amalia

Lately, many millennials have begun to realize that stock transactions are a very profitable thing to do. Even more advantages are owned by stock investments. Stocks is a proof of ownership of a company, which is certainly very beneficial for those who own it. How to have it is not as difficult as before and very effective. Here are some reasons why you should start investing in stocks.

1. LOW STARTUP COST

Many people says that investing in stocks is working only for a wealthy person because investing needs a large capital. This assumption is incorrect because the fact that stock investing is actually a type of investment with the most affordable Start Up cost. Now, investing in stocks can be done with only a capital of Rp 100.000, and not required to buy at once in bulk, but you can also buy shares in the Dollar Cost Averaging. The profitable of a stock investment is that you can invest according to your ability. There is no limit to invest a certain amount each month, so you can also be flexible in putting money to be invested.

2. Government Guarantee

One of the biggest fears someone invests is the security of the deposited funds. People's doubts about stock investing often arise because they are worried about the investment funds deposited will be intercepted by the securities or brokers. But now investing stocks is one of the safe alternatives because the government has provided various protections against stock investors.

3. Flexible in terms of place

Stock investing is a practical investment option for busy people. With you buying stocks it can be said that you like buying a business but without disturb your main activity.

Investing shares does not require you to come to an exchange to transact stocks, even you don't need to leave the house to make a transaction. Both offline and online transactions, can be done anywhere, so while doing your busy activities, you can also take stock transactions.

4. Easy Transaction

Stocks are one of the most easily traded investment instruments. For some other investment instruments, it is necessary to carry the certificate and the object in order to be traded, there is even a need for a letter of agreement by hiring a notary. While to transact stocks, you just need to call a broker, even today there's already a called online trading so you just have to click the mouse and type on the keyboard, then the transaction happens.

5. Liquid & Transparent

Stocks are transparent meaning you can clearly see how much the request and offer price as well as how many lots are offered or requested. In addition to the regulations of BAPEPAM, regarding the disclosure of information, then every open company listing on the exchange, must upload its financial statements, so that investors can analyse the conditions and prospects of the company.

Stocks are liquid which means that if you are in need of money, stocks are an investment instrument that is easy to sell or disbursed easily and quickly. Depending on the stock you have, the liquidity level of each stock is different. Crowded stocks are usually more liquid. Once you have sold your stock, the stock transaction settlement mechanism is also the longest time being 3 business days.

So, stock investment is very tempting to do right? Especially for us millennials who want to start a business and of course this can be a business that you can consider.