Good shares and good companies are two separate issues. Good company does not mean that you cannot blindly call that company’s shares good shares. In general, companies that have made good dividends in the past year, have good reputation in the market, have been operating well for many years are called good companies.
Good shares, on the other hand, are shares of companies where there is a lot of by-sales, comparative risk is low and good profits can be made. However, good company shares can also be good shares. When the company is good and the shares are good, then the profit is huge.
As a general investor in the stock market, we aim to earn as much profit in as little time as possible. If everyone wants to buy shares of a good company, have you thought about how much the share price of that company will rise? And the so-called bad company will not have the buyer of the shares.
In the stock market, the value of the company increases or decreases the value of all those shares. Investors are now more attracted to small capital shares, in particular. Investors fall behind in the Z category shares and small-cap shares, as the share price of a large company is neither too high nor decreasing. As a result some people make good profits, but many people buy and buy shares at the wrong time.
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So before buying a good company’s share, you need to see if the stock is right for you. Because you don’t want to buy a share to hold your money. So the better the company shares, the more transactions that are taking place and the better the business, the more likely it is to buy those shares.
