Let’s start by taking a look at your share purchase options. Calculating the number of shares you can purchase with a given amount of money is simple, provided your broker doesn’t charge commissions for stock trades (the majority of well-known online brokers don’t).
Basically , there are three steps:
- Find choose stock’s at current share price. You can get a quote from a financial website or from your broker. Verify that the quote you are viewing is current and not delayed.
- Subtract the current share price from the total amount of money you have available to invest in the stock.
- The amount of shares you can buy depends on whether your broker permits fractional share purchases. Round down to the nearest whole number if you can only purchase entire shares (which is the most typical scenario).
How much returns can I expect from the market?
- If you invest your money in a fundamentally strong company then I’m sure you will earn good profits:
- If your stock is part of a large Market cap, one can anticipate annual growth of 15–18%. You run less of a risk in this scenario.
- A mid-cap stock should increase by 25 to 30 percent annually. Your risk here will be average.
- You can earn up to 35–40% annually from a small-cap stock. Your danger will be considerable here.
- Your return may be lower if a sector has a few years of poor performance. Your return will be extremely large if your stock is in an emerging industry.
