Wednesday, 15 January 2014

Knowing if You’re a Qualified Investor


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.

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