{"id":205,"date":"2009-08-08T09:00:00","date_gmt":"2009-08-08T13:00:00","guid":{"rendered":"http:\/\/www.intuitiveinvestor.com\/web\/?p=205"},"modified":"2018-08-23T09:23:08","modified_gmt":"2018-08-23T13:23:08","slug":"investing-in-the-stock-market-makes-sense-part-4","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2009\/08\/08\/investing-in-the-stock-market-makes-sense-part-4\/","title":{"rendered":"Investing in the stock market makes sense, part 4"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">This is the final edition of why investing in the stock market makes sense.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">*****<\/span><\/p>\n<p><span style=\"text-decoration: underline; font-size: 16px;\"><em><strong>Liquidity<\/strong><\/em><\/span><br \/>\n<span style=\"font-size: 16px;\">Another advantage of investing in the stock market vs. other types of investments is liquidity. Even for thinly traded shares of stock, it usually only takes a day or two to sell your interest in a publicly traded firm. Compare this to trying to sell a house, office building, baseball cards, art, gold jewelry, bonds and preferred stock.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Liquidity doesn&#8217;t just mean you can sell something quickly, it also means that you typically get a good price. Liquid markets have lots of buyers and sellers and that means that your price likely represents an intelligent evaluation of a business and fair market value.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><strong>Axiom 4<\/strong>: Stock markets are liquid.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><em><span style=\"text-decoration: underline;\"><strong>Information<\/strong><\/span><\/em><\/span><br \/>\n<span style=\"font-size: 16px;\">Because of the popularity of stock markets, most publicly traded businesses have a wealth of information available about them. Compare this to that house you almost bought until the inspector discovered water in a corner of the basement. More information means that you switch from speculation to investment as you are able to engage, not just your intuition, but your intelligence, too.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><strong>Axiom 5<\/strong>: Publicly traded firms have a wealth of published information available for evaluation.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><em><span style=\"text-decoration: underline;\"><strong>Regulation<br \/>\n<\/strong><\/span><\/em>Our last reason for why investing in the stock market makes sense is the presence of a solid regulatory structure. I know many people would disagree with me, but good regulation ensures that fairness prevails in most stock market transactions. This strongly favors the little gal and guy. As I have said so many times, football without rules would eventually become a gladiatorial sport. The UFC without rules would quickly become a gladiatorial sport. Regulation makes sure that there is a more level playing field.<\/span><\/p>\n<p><span style=\"font-size: 16px;\"><strong>Axiom 6<\/strong>: Regulation ensures a more fair investment environment.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">*****<\/span><\/p>\n<p><span style=\"font-size: 16px;\">In conclusion, I am and will continue to be an investor in the stock market. Its advantages are myriad and prudent investment in specific businesses has a high chance of returns that outpace the growth in GDP and of most other asset classes.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is the final edition of why investing in the stock market makes sense. ***** Liquidity Another advantage of investing in the stock market vs. other types of investments is liquidity. Even for thinly traded shares of stock, it usually only takes a day or two to sell your interest in a publicly traded firm. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12,3],"tags":[],"class_list":["post-205","post","type-post","status-publish","format-standard","hentry","category-best-of-the-blog","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=205"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/205\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}