With the recent blood bath in stock markets its natural that most people think the stock market is to be feared and should be stayed away from . But actually stocks and companies are fundamental to our economy and directly or indirectly many people are invested in stock markets through shares , mutual funds , portfolio management services .
Though in the short term stocks fluctuate according to market sentiment (markets also have emotions like humans because humans invest in it ) ., in the long term markets behave at least in part to company fundamentals . This is where some knowledge of finance helps in investing .
Finance and the numbers they represent are an interesting thing in itself . Just like personal finance a companys finance also can be measured and thanks to greater mandatory transparency lots of information is available freely online . Be it the cash flow of a company , the debt equity ratio of a company or the profit margin growth these can be made available with a click of a mouse .
Much of the bad name of share investing is because of day trading . Thats highly risky investing and generally dont depend on fundamentals of a company but mainly on emotions . And as everyone knows emotions are nor reliable .
But medium to long term investing is different . Of course like car racing or driving the car on the city risks are there depending on how you invest in the market . But it would be wise to understand about this field especially for people who are already invested . After all you should know how your hard earned money is invested .
One of our training modules for healthcare professionals deals with basic concepts of finance which includes both pharma investing as well as dealing smarter with personal finances and clinic management . For details send mail to drharoonstraining@gmail.com or call 8589059190
