Various ways of investing in the stock market

By Brook Peterson

After the period of recession and critical credit situation of 2007, prices of goods are soaring high. Thus, debtors are tracking every means to find out an alternative source of earnings. If you have a number of due credit card bills and desire to opt for credit card debt consolidation, you may pay off your consolidated loan sooner by the profits you will make from the stocks. However, prior to investing and earning a considerable amount of cash, you need to get acquainted with the numerous ways of investing in the stock market.

1. Purchasing common or preferred stocks – The easiest way to invest is to buy stocks and retain it for the long term. The growth or shrinkage of your money depends on the financial position of the company. You needn’t keep a consistent watch on your position and make instantaneous decisions, since you’re in it for a long period of time.

2. Stock options – You can also invest in the market using stock options. This gives you the authority to either sell or buy a particular security on or ahead of a specified date. Option agreements are inclined to have brief existence and can make considerable movements, either up or down, within a moderately short span of time. Options need to be dynamically managed since they do ultimately expire. Hence, there’s a lot of risk associated with it.

3. Leaps – These are more or less like options, but they don’t terminate for a much extended period of time. Whereas options generally get expired in a few months, a leap may not expire for a couple of years. It’s a mode of compromising between stocks and options.

4. Option spreads – These are fundamentally an amalgamation of leaps, options, and stocks. For example, if you purchase a stock and trade a call option on the stock, it is regarded as an option spread strategy.

5. Investment clubs – These are monthly get-togethers of a number of people who group their ideas and cash to produce a public share portfolio. They’re done for sociable entertainment as well as for profit. Just a monthly subscription will equalize your drinks’ bill at the monthly get-together with your investment outgoings.

You can also initiate a modest monthly investment program. In the U.S. there are sharebuilder investment platforms that allow you to purchase small amounts of shares, provided you’re ready to state in advance what shares you wish to purchase and get the market value on the day your order is carried out.

Authior Bio: BP is a regular writer for various finance related Communities including Debt Consolidation Care (http://www.debtconsolidationcare.com/). She is a PG degree holder in Marketing and Finance and right now working in a reputed bank as a relationship manager. She is well equipped to write articles on debt consolidation , debt settlement, frugality, savings, economies of states etc.