Investing in
the markets and industries is where one could attain financial independence. Your
grow as your shares in companies grow as well. However, the first challenge is
getting into the stock market. Here are a few things that will help you know if
you are a qualified investor.
1.
Market
Classes
Investor qualifications
vary depending on the investor’s target market. For example, hedge funds are
private funds that is run by an experienced manager who ensures great growth, but
with a high initial price. Only accredited investors are allowed in hedge funds
simply because it could endanger a normal investor’s resources.
2.
Common
Criteria
For most
investors, the common criteria is not always financial. You could have enough
money to buy enough shares, but you have to have a clean slate in your
financial debt. Most brokers or agents will ask if an investor understands
investing and knows how to research simply because an investor needs to make
proper decisions based on annual and quarterly reports of companies and
investors.
3.
Legal
Nationality
Of course,
before you participate in any local stock market, you’ll have to confirm your
legal nationality and if your legality permits you to engage in activities that
directly affect a country’s economic activity.
