The world of investment often times seems complex and completely foreign to the new investor, leaving them unsure as to where to make their start. Gate Investment Group understands how daunting the financial marketplace, as well as the prospect of financial investment, can be to the rookie investor, often times leading to more confusion then encouragement or inspiration.

Below, the investment experts at Gate Investment Group seek to alleviate this confusion by outlining several of the key factors and terms every new investor should know before committing their money to an investment.

The Reason for Stock
Stocks, says Gate Investment Group, are made available for sale to investors by companies, generally for the purpose of raising money for company expansion. Company growth and expansion is usually made possible through the sale of stock to outside investors, which can reap profit for both parties in the end.

Stocks and Bonds…What’s the Difference?
Every individual stock, says Gate Investment Group, is a representation of a piece of ownership in a particular company. A bond, essentially, is a loan made to the company, which is then exchanged for interest (generally paid out twice a year).

Blue Chip Stocks
Blue chip stocks, says Gate Investment Group professionals, are believed by investors to be safer investments than most other stocks, generally leading to strong growth, a strong balance sheet and paying out a good dividend.

Stock Brokers
Brokers are licensed financial professionals that utilize a brokerage account to buy and sell bonds, stocks and/or mutual funds for the investor. Brokers make their money on a commission, charged to the investor, and should never be considered as financial planners as they merely execute trades, say Gate Investment Group professionals.

Stock Can Be Self-Purchased
Investors have the opportunity to purchase their own stock, avoiding the commissions and fees of stock brokers and holding their shares directly. This, says Gate Investment Group professionals, enables the investor to receive his/her dividend checks directly as well.
There are many things that go into investing, and it’s important to educate yourself on what is involved before joining the investment community.