The best stocks to invest in for 2018
The stock exchange, in simple terms, is nothing more than a huge global network where every day vast sums of money are moved back and forth. A share or stock stands for a share in the company. The value of a share relates to the company behind it. The trading of shares has frequently been a game of chance; no one can say which company will do well and which will not. If a company has a good reputation, investors will pack in, a company with a poor performance or poor reputation may face difficulties to sell its shares. Unlike a normal market where goods can be moved and carried into your house, only virtual goods are available on the stock exchange.
What is the need for the stock market?
- If you want your business to grow, you will need capital. To get funds for your business, firstly you have to approach a bank.
- The bank normally gives capital in the form of a loan to the business for a particular amount of interest, and the business needs to pay back the interest as well as the principal amount.
- The second option to arrange the capital is in the form of private investors or private equity, where they buy a certain percentage of the company and get a certain percentage of the stock, which they can later sell for a higher amount.
- If a company wishes to raise a huge amount of capital from thousands of investors, the company needs to go public. This is where the stock market comes into the picture, as they need to release shares in the stock market in this case.
- So, these companies get their shares listed on the stock exchange, and they get the money from the public into their business.
How does trading in a stock market work?
- Initially, for trading in a stock market, you need a DEMAT account.
- To open a DEMAT account, all you need is a bank statement and a canceled check and any two-identity proofs.
- The account is normally opened in a week or so.
- You will need a broker to help you in trades in the market.
- Alternatively, you can study and learn about stocks and do it yourself.
Which are the top 10 stocks to invest in for 2018?
The names of top stocks are as follows:
- HubSpot (HUBS)
- Intuitive Surgical (ISRG)
- Kornit Digital
- Lululemon Athletica
- Polaris Industries
- United Healthcare
Why is the Amazon share one of the best stocks to invest in for 2018?
- The Amazon share price is increasing day by day in comparison to its competitors.
- In the past one year, its share price has approximately doubled the amount.
- Recently, it has been reported that Amazon set a company record with the turnover of about $2 billion.
- The company is preparing to expand its venture in the coming years.
- They are claiming a broader band of the share market in 2018.
- This is the reason Amazon is one of the best stocks to invest in 2018.
What makes the Facebook stock one of the best stocks to invest in?
- If investing in stocks, one name that instantly comes to mind is Facebook.
- Facebook is a fast-growing organization that gives you a higher profit in stocks.
- This year, Facebook has shown a 35 percent growth in its turnover, which is approximately double the growth of its competitors.
- Therefore, Facebook comes under the list of the best stocks to invest in 2018.
How is investing in McDonald’s stocks a good option?
- McDonald’s serves their customers with a variety of their fast food choices.
- With a share that costs only $69.42, there are good chances of better returns on your investment.
- They keep the customers coming back to them and spend at their outlets, which make them generate billions in worldwide sales.
- Overall, this is a great option and one of the best stocks to invest in.
Why is Kornit Digital a good choice for investment?
- Kornit Digital directly caters to the needs of both designers and manufacturers, and it develops, manufactures, and markets the printing solutions for the textile industry.
- Investing in these shares is one of the best stocks to invest in as there are positive cash flows for expansions and acquisitions.
- They have a good growth rate.
The middle of the year is the best time to check your stocks and make a reevaluation before the end of the year.