London, UK, 7th August 2021, ZEXPRWIRE – Many traders all around the globe are stock traders. People continue choosing stocks despite the uncertainty because of their profitable nature. Financial Centre Broker David Bloom says that most of the traders know that thoughtful decisions can help them overcome the risk. This is why many people are actively investing in stocks to earn money. Some ways to earn money using stocks are mentioned below but before that, we have to know what stocks mean and how they can benefit us. 

What Are Stocks?

Stocks are nothing but shares of companies or corporations which you can buy on exchanges. When you have stocks then you are the part-owner of that company in which you invested money. If your company does well and if it is profitable, you will get profits in return as a shareholder just like any other owner of the company but this amount would be proportional to the number of shares that you buy.

Making Money With Stocks

Dividends and Capital Gains are the two main ways to earn money from stocks. The dividend yield is the share of profits that a stock pays out in dividends every year. Dividend yields can vary depending on the industry. Obviously, you want to buy stocks with the highest dividend yields.

The difference between capital gains and dividends is that capital gains are profit from selling your stock, while dividends are paid out as payment for owning a stock. The capital gain rate is determined by how long you have owned the stock: if you have owned it less than one year, you will incur short term capital gains tax, while if you have owned it over one year, you will incur long term capital gains. Capital gains taxes are lower than dividend yields, so you want to purchase stocks that pay out dividends if possible.

Conversely, you want to sell your stocks before they go down in value or after there has been a major increase in the value of the stock for maximum profit. If the company pays good dividends and it is doing well enough to survive, you may want to hold on to the stock. We have picked two stocks that you can hold for a long time and do well with.

However, it should be kept in mind that the world of stocks is highly unpredictable and volatile. There are no guarantees. The stocks that Mr Bloom has helped us pick seem promising at the moment and they will continue being profitable if nothing unfortunate and sudden happens. In any case, he says that it is best to thoroughly research before you make your own choices regarding your stocks.

Facebook

Facebook Inc is a social media company that was founded by Mark Zuckerberg. It has two platforms: Facebook and Instagram. With more than 1.4 billion active users, Facebook offers its users numerous opportunities to interact with people across the world in various ways such as messaging, photo sharing, live video streaming and other features. This site was created by Mark Zuckerberg in 2004. Facebook stock can be a good long-term investment because of the company’s growth and performance throughout the years. The business is also expected to grow as more people are coming online and joining Facebook.

This year in the month of April, the firm reported revenue of $26.17 billion for the quarter which was 48% more than the last one. The statistics say that the firm has succeeded in growing its net income by a huge percentage of 94% this year. In an interview with us, Mr Bloom said that he expects Facebook’s stock to be profitable for the next 10 years:  “I think they will be able to grow their cash flow at a pretty decent clip. They continue to up their investment in original content which is an area I think they should be investing more in”. He also believes that Facebook has some opportunities to expand its business into new areas such as video streaming, financial services and health care.  

Instagram

Instagram is one of the largest social networking sites. It is available on all devices and has a lot of users. Instagram is used for sharing photos, videos and it also has a live feature that makes it possible to broadcast in real-time. The site was bought by Facebook Inc in 2012. Currently, there are more than 1 billion monthly active users (MAUs). Revenue growth is the main driving factor for Instagram and it is also growing rapidly.

Instagram has grown at a steady pace over the years and now it is used by people of all ages with different backgrounds across every continent in the world. The revenue of the second quarter grew by an astonishing percentage of 116% year over year, bringing the total revenue to $982 million. Mr Bloom says that the growing popularity of the platform suggests that it will continue performing well for the next 10 years at least.

Disclaimer: Our content is intended to be used for informational purposes only. 

It is very important to do your own research before making any investment based on your own personal circumstances. 

You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.