BASICS (11): WHY PEOPLE INVEST IN STOCKS AND SHARES.

Quite frankly, there could be as many reasons as there are people who invest in stocks and shares worldwide but a linking thread can be drawn to aggregate these rather personal reasons into the following clear groups:
NO TIME TO SPARE.
All human beings earn a living by investing their time ( attention); their expertise and their resources. Many do discover that they have the resources but do not have time to be involved in day to day running and monitoring of any company they must invest in to make more money.
They have the option of living such monies in the bank as interest earning savings or deposits; playing the shylock by lending to others; embracing real estate most likely while depending on an agent; or buying stocks or shares to allow the money alone work for them.
All of these investment outlets have their own risks but many have discovered that if one truly has no time to devote extensively to running or monitoring one's investment, the best option is to invest such money in stocks and shares or leave it in the bank for lower interest income.
GOOD RISK, GOOD RETURN
Every thing we do daily involves some element of risk. Even leaving your home to buy something across the road involved the risk of being hit by a vehicle or whatever. Saving your money in a bank involves the risk of failure and subsequent loss of all or part of such savings; going into real estate has its own risks while, of course, buying stocks and shares involves some risks too.
Now, the point is many people opt for stocks and shares after convincing themselves that the risk and return involved is the type they can take in their stride. On the other hand, they also appreciate that only bank savings can confer liquidity faster than stocks and shares when faced with crisis of illiquidity.
SECURITY
Sometimes, if not most times, those who are more concerned with security of their investment realise that none can be more secure than stocks, particularly than federal government bonds. The rates and payment schedule are fixed and redemption at maturity is always guaranteed. Thus, for people who are more concerned with the security of their investment, as against returns, stocks and shares are the least volatile or stressful.
CONTROL
On the other hand their are people who desire to have control over particular public companies at any time of their choice and for whatever reason. It could be that their father once worked as a cleaner in such a company before they made good, that is their own cup of tea.
However, it is only through purchase of shares that desires are realised irrespective of the price on offer  for the shares of such companies and the profit making potential given its track record and recent results. They go on buying until they have control.
TOP RETURNS:
For some people, it is only about making money as fast as they can. So they buy the shares of companies that make high profit every year and also declare dividends. They also watch out for shares that people have high demand for then try as much as possible to speculate with their holdings.
* Take your pick but keep a date tomorrow for HOW PEOPLE MONITOR THEIR STOCKS AND SHARES.

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