Bitcoin reached a value of over $34,000 for the first time on Sunday, a scant three weeks after crossing the $20,000 threshold.

Already the world’s most popular cryptocurrency, Bitcoin now has a market capitalisation of over $600 billion, vying for position with the likes of Facebook and Tesla. It has also passed Visa’s market cap, placing it as the world’s largest financial service.

Cryptocurrencies flourished during 2020 as COVID-19 lockdown measures and fears of a global recession sent investors in search of alternative financial assets. Bitcoin in particular saw strong gains after PayPal announced that it would allow it and other cryptocurrencies to be traded on its platform, a key step towards the mainstream adoption of cryptoassets.

Overall, the price of Bitcoin surged by over 300% during 2020. In the opening days of 2021, its value has risen by almost $5,000, with an 18% jump on Sunday morning before gradually receding.

Equally impressive, new statistics indicate that Bitcoin’s 30-day average daily trading volume between 1 December and 31 December reached $39.1 billion, higher than the average daily trading volume of Apple, Amazon, Microsoft, Facebook and Alphabet stock during the same period ($37.68 billion).

“What’s happening now – and it’s happening faster than anyone could ever imagine – is that Bitcoin is moving from a fringe esoteric asset to the mainstream,” said Matt Hougan, chief investment officer at Bitwise Asset Management.

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“If it’s going mainstream, there is just so much money on the sidelines that is going to have to come in and establish a position that it leaves me very bullish for 2021.”

In the coming weeks, US PayPal account holders will be able to trade digital coins including Bitcoin, Litecoin and Ethereum. PayPal also plans to expand trading options to Venmo and some new countries in the first half of the new year.

David Smith, a cryptographer from the Smart Card Institute, offers Finance Monthly a beginner's guide to various financial markets and what a prospective investor can hope to get out of them.

Most people get intimidated by the idea of making an investment – mostly because they don’t understand the different types of financial markets and which one could be the best suited for them. Our article today sheds light on the different types of financial markets so that you can make better investments in the future.

1. Stocks

Most people are aware of stocks. They are probably the most popular and simple kind of investment that has been around for a really long time. Basically, when you invest in stocks you are buying a part of a share in a public trading company. Some of the biggest companies in the world today such as Microsoft, Apple, Samsung, all sell their shares. However, they sell only a small percentage in the stock market.

Once you buy the stock and the prices go up in the stock market then you can sell the share at a profit. The downside is obviously if the price goes down and you will go into a loss. If you wish to buy stocks then brokers are the right people to get in touch with as they will help you make an investment.

2. Bonds

Buying a bond means you are lending money to an enterprise that is either government-owned or is a business. Businesses issue corporate bonds whereas the government issues treasury bonds or municipal bonds. Once you have held the bond for a particular time period and it reaches maturity, you can acquire the bond with interest. Bonds are generally a low-risk investment and come with a lower return as compared to stocks.

Buying a bond means you are lending money to an enterprise that is either government-owned or is a business.

3. Foreign Exchange

This is a relatively simpler investment. Foreign exchange investors buy a currency that is expected to increase in value in the future and then they make a profit out of it. The profits all depend on the exchange rates at the time of selling.

4. Mutual Funds

Mutual funds refer to a pool of investors who are investing in several companies at the same time. These funds are either managed actively, in which the manager chooses the companies for the investors to put their money, or they can be passively managed, in which the fund tracks some stock market investment. There can be mutual funds which are a mixture of actively managed and passively managed funds.

5. Certificates of Deposit

One of the safest forms of investment is a certificate of deposit in which you give money to a bank for a certain time period and once the time period is over you can withdraw the money along with the interest which was pre-determined.

6. Physical Assets

Investing in physical assets means you are buying an asset that holds a market value and can be liquidated when you need the money. These assets can be precious metals, jewelry, property, etc. As in the case of most investments, investors who put their money here expect the prices to increase so that they can sell their property, jewelry, etc. at a higher price.

7. Cryptocurrencies

Cryptocurrencies can be thought of as digital currencies that have market value and are a great investment option. Bitcoin is one of the most famous cryptocurrencies that is now coupled with advanced smart card technology. However, cryptos can be an extremely risky form of investment as their value fluctuates tremendously.

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8. Retirement Plans

Most people are offered a retirement plan at either their workplace or some other means. Retirement plans are not exactly an investment category but they can be thought of as a means to make other investments as they give you countless advantages such as tax leverages.

9. Annuities

A lot of people use annuities coupled with their retirement plans to make investments. Once you purchase an annuity you come to terms with a contract with an insurance company that provides you with payments periodically. The payment duration and the amounts are both predetermined. Annuities are a low-risk investment but they are low-growth as well.

10. Options

Options can be thought of as a complex kind of stock. An option gives you the ability to either buy or sell a certain asset at a predetermined price at whatever given time. An option may decrease in value and might end up in a loss for the investor.

Conclusion

Overall, financial markets make it possible for companies to acquire capital due to their regulated and open system and enable businesses to balance risk with the help of foreign exchange, commodities and other derivates.

In the present era, every person strives for economic sustainability. People struggle to make ends meet financially, as jobs are paying average wages and businesses are merely covering the running costs under this economy. At a time when there are not many profitable business opportunities, the trading of cryptocurrencies has emerged as a feasible mode of financial investment. Digital currencies have taken the economic world by a storm and it has completely altered the concept of traditional currency.

The global economy has seen major fluctuations over the course of the last two decades. The financial crisis of 2008 proved to be extremely hurtful to businesses, and it was an indication that the traditional concept of currency was unable to tackle modern complications. This is when cryptocurrencies, like Bitcoin, started to make their way into the mainstream financial world.

New investors and traders are now inclined towards digital currencies like Bitcoin. There is an increasing demand for Bitcoin in the digital market. The boom in the prices of bitcoin in 2017 came as a shock to the financial world, and many of Bitcoin’s early investors were able to gain thousands and millions of dollars in profit. Since then the business world has kept a keen eye on the performances of Bitcoin in the market.

The Reason Behind Bitcoin’s Success

The traditional banking system is deemed incompetent by the public, as the general perception is that it has too many complications and complexities. Plus, there is a governing body over these banks which keep a regulatory check on every transaction made from a single account. People have to go through a lengthy process even to open an account.

Bitcoin, on the other hand, is an independent entity, and it has provided an easier alternative mode of transaction for the public. Without any external controls, transactions through Bitcoin are more safe and secure. Furthermore,Bitcoin can be traded and mined from anywhere in the world, as it unites the digital world in one forum. However, banks usually do not allow international transactions, and if they do the cost is much higher. The global economic market sees bitcoin as a more feasible and profitable mode of transaction.

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Feasibility of Trading Bitcoin Through Mobile Applications

Bitcoin is used by millions of people all over the world, and this fact has forced major brands to recognize Bitcoin as an acceptable mode of transaction as well. However, there are still many complications to this new concept which are not simple to comprehend by the general public. This is why there are platforms that guide new traders and investors in the field.

These platforms provide demo accounts to provide practical experience to the traders, and even allow their accounts to function from a minimal investment. They have no extra charges, and they provide market analysis and predictions to the users, which later helps them in gaining trade profits.

These platforms have a high success ratio, and they use modern technologies like blockchain and artificial intelligence to make predictions. Accessibility and feasibility is another benefit of trading through these platforms, because they are easy to use and can be accessed at any time to trade bitcoin on your phone. They allow manual and automated training as per the convenience of the users and give traders a chance to make their own decisions.

With the growing influence of bitcoin and other cryptocurrencies, these platforms are expected to play a vital role in training and guiding new traders. Also, these platforms have a minimal risk of loss which encourages new investors in the industry.

However, before signing up for a personal loan, you have to know its categories first and assess which one would best suit your financial needs.

Secured Personal Loans

If you have financial assets like stocks, bank deposits, mutual funds, and cash, you can certainly sign up for a secured personal loan right now. Moreover, tangible physical assets such as properties and expensive commodities can make you eligible for personal loans.

The assets mentioned above will function as collateral that will qualify you for the loan amount according to your financial capability. These will often serve as the alternative payment to the financial institution if you fail to settle your debt on the agreed loan term.

High-priced collateral would grant you a favourable loan amount. Since collateral is at stake, a secured personal loan will most likely be claiming fewer risks. Therefore, this will be quite fair for borrowers with low credit scores.

Unsecured Personal Loans

Apparently, this one is the total opposite of a secured personal loan. One example is the pre-approved personal loans, where creditors would look to see if the borrower’s credit is worthy, instead of requiring the financial assets as collateral. The credit rating will serve as the grounds if the application is approved or declined.

This type of loan poses a higher risk for the lenders. Secured personal loans allow lenders to take over the collateral if the borrower has neglected the loan terms that were agreed upon during the application period. In unsecured personal loans, lenders would only bank on the borrower's word and the credit scores they boast so much about.

This type of loan poses a higher risk for the lenders.

Fixed-Rate Loans

If you want a stable interest rate over the agreed payment term, a fixed-rate loan is the best option you can go for. If you’re on monthly repayments, you’ll never suffer from fluctuations in the interest rate every month. If you do it this way, then you can sustain consistent financial control since you’ll be allocating the same monthly payment amount for your personal loan.

Variable-Rate Loans

In this type of personal loan, your economic circumstances would determine your personal loan’s interest rate. For this reason, you aren’t entitled to the power to manage your finances as the interest rate fluctuates every month, depending on the market interest rates.

Unlike fixed-rate loans, the high risk is now charged to you. However, most variable-rate loans offer low-interest rates at the beginning of the payment term. The interest rate would change gradually as the term progresses.

How to Become Eligible for Every Loan

Here’s what you should do to become eligible for different types of loan:

Settle Your Current Loans Before Applying for Another

An existing loan doesn’t directly turn down your application for another lender. However, lenders would prefer potential borrowers with a clean credit history upon application. If you have signed in with multiple lenders, then you should consider reconciling all of these debts before applying for another.

A borrower with ongoing financial obligations will raise the risk for both the lender and the borrower. On the lender’s part, the assurance that the borrower could still put up with another loan is disputable. Of course, for the borrower, conflicts of interest could emerge amongst multiple lenders that they signed in with.

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Apply for a Fair Loan Amount

The lenders will definitely rely on your credit history. Therefore, you should secure a copy of your credit record before your loan application. You should assess and verify the figures in your credit history so that you’ll still have time to correct any errors that you see.

The loan amount will be heavily based on your financial capacity. If you think you have a clean credit score, then you can expect an agreeable loan amount. However, if you have a stained credit history, you should assume a lower loan grant.

Maintain a Good Credit Score

To sustain an outstanding credit score, you should be prompt when the time comes to pay your bills and other financial obligations. All of your financial transactions will be registered in credit bureaus.

Your payment history can tell whether you’re creditworthy or not. Hence, being branded as a delinquent payer would hinder you from applying for another loan in the future. Whether or not you plan to get a personal loan, building a good credit score must be taken seriously.

Choose the Right Lender

You should look into the rates offered by your prospective lenders. Comparing the proposals from multiple lenders could help you decide on where to apply. The loan document should be appraised. As a borrower, it is your responsibility to figure out whether a lender is legitimate or not.

Get the Requested Documents Ready

The lender would need the borrower to supply proof of identification, address proof, and bank statements issued by a valid financial institution. You have to prep all of the documents so that the lender will have a positive initial impression of you. You have to begin by presenting yourself as an accountable person.

Takeaway

Personal loans aren’t only about picking a lender and accepting the loan. There’s a lot of preparation on your part so that your loan will be approved. Hence, you need to have a good credit score sufficient to secure a personal loan without a hitch.

German payments fintech Wirecard, which collapsed following a fraud scandal earlier this year, will see a significant portion of its remaining assets purchased by Madrid-based Banco Santander.

Wirecard’s insolvency administrator Michael Jaffe said on Monday that Santander “will acquire the technology platform of the payment service provider in Europe as well as all highly specialised technological assets”. The deal marks the conclusion for the dissolution of Wirecard “despite unfavourable conditions”, Jaffe added.

In a separate statement, Santander said that it would acquire technological assets from Wirecard’s merchant payments business as part of plans to accelerate the bank’s growth in Europe. A source familiar with the deal told Germany’s Süddeutsche Zeitung that Santander had agreed to pay around €100 million for these assets.

Around 500 Wirecard employees who manage the technology acquired by Santander will join the bank’s global merchant services team, but remain in their current locations, according to the Santander statement. No Wirecard companies were involved in the acquisition and Santander will not assume any legal liability relating to the company or its past actions.

Wirecard was a rising star in Europe’s fintech scene until June this year, when it emerged that €1.9 billion of customer deposits could not be found in the company’s accounts. The resulting fraud scandal led to the arrest of former Wirecard CEO Markus Braun and a warrant being issued for the arrest of COO Jan Marsalek. The company filed for insolvency in August.

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The scandal was an embarrassment for German financial regulator BaFn, and Jan Marsalek remains at large despite an ongoing Interpol search.

Investor processes are still underway for the sale of Wirecard’s other subsidiaries in Asia, Turkey and South Africa, Jaffe said. The sale of assets from subsidiaries in North America, Brazil and Romania has already been included, with results expected in the coming weeks.

Some might believe that established businesses do not need financial aid, funding, or loans. The logic is those big companies are wealthy. It may be accurate, but owning stock or assets is not enough. A big company can sell items to inject some cash into their operations. It can apply for bank lines of credit. A working capital loan is the fastest way for a firm to keep things moving. Today, we will discuss this type of corporate loan. We will explain how it works and what corporations can access it.

What is a Working Capital Loan for Corporations?

Corporations use working capital loans to finance everyday operations. It is normal in the current economic landscape and the ongoing global health crisis. They could sell stock or get bank loans to fund investments. As many businesses know, this year was anything but ordinary when it came to daily operations. Even large firms need fast access to cash to pay debts, cover rent, pay employees, etc. A working capital loan is a financial instrument. It helps companies big and small to make it through periods of low business activity.

The definition of a working capital loan is simple. It represents the difference between your current assets and your liabilities. The resources can include accounts receivable, inventory, investment/stock portfolio, etc. The obligations can include owed payments to suppliers, debts, etc.

Most corporations receive unsecured business loans. It means that they are eligible for such funding without collateral. By comparison, small businesses and startups have to present guarantees. Corporations in need of a working capital loan can address a bank, governmental funding, and private lenders.

According to All Year Funding, alternative lenders offer loans to small and big companies alike. They do not push for perfect credit scores and collateral. In this context, startups and larger firms can access merchant cash advances. These types of business loans can quickly cover a company’s needs for money for daily operations. The advantage is that alternative lending works much faster than banks. Large food distributors, supermarket chains, and construction companies have access to loans in a couple of days. The limitation of such a loan is the payment threshold. A company needing a few million dollars should go to another type of lender.

Corporations use working capital loans to finance everyday operations.

Where Can You Secure Corporate Funding for Working Needs?

When it comes to corporate funding, your best bet is the Small Business Administration. Do not let the name fool you. The entity allows you access to loans as high as $5 million. It depends on your working capital needs. Here are some popular SBA working capital loans for corporations:

• Standard 7(a) Loans. A company can get up to $5 million. The maximum guarantee from the SBA for loans up to $150,000 is 85%.
• Working CAPlines. They are revolving lines of credit to finance seasonal or short-term needs.
• International Trade Loans. The maximum SBA guarantee is 90%. The loan works best for companies that need funds for global exports. The maximum loan amount is $5 million.
• Export Working Capital. It provides companies with additional funding to increase domestic export sales. The maximum SBA guarantee is 90%, and the maximum loan amount is $5 million.

Small businesses have their SBA microloans and 7(a) working capital loans to access. They also have private lenders to rely on in emergencies. In comparison, corporations need to meet rigid criteria to access SBA funding. A high credit score and no history of bankruptcy in the past three years are mandatory.

The Pros and Cons of Working Capital Loans for Corporations

Before you jump at the opportunity of accessing working funds through a bank, the SBA, or private lenders, you need to know the pros and cons of this type of loan.

Pros of Working Capital Loans

• It allows businesses to cover all gaps in the working capital expenditures. This way, corporations can keep employees on the roll, pay suppliers, deliver goods, and expand.
• A working capital loan is among the fastest types of loans big businesses can access.
• It does not require any equity transactions. It means that the owners of the company still have full control over their business.
• It is among the most popular business loans in the current health crisis; corporations had to face economic instability and adjust to the present challenges.
• Companies usually take such loans to make ends meet when cyclic businesses are slow. By the time the trade booms again, they already have paid the loan.
• Some types of working capital loans are unsecured, removing the collateral obligation stress.

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Cons of Working Capital Loans

• Working capital loans’ interest rates depend on the lender. Medium and large businesses work with interest rates between 6% and 16%.
• Missed payments on such a loan can lead to disruptions in the company’s credit score.
• Most lenders agree to a loan period of 6-12 months.

Bottom Line

The global economy is taking some hits as of late, and they do not spare medium and large corporations either. Whether your lenders are banks, the SBA programs, or private financial entities, you need to make sure you meet their criteria. Working capital loans are great solutions to keep employees. They allow you to run the business through all your facilities and boost marketing efforts. You have to pick the best conditions for your company and make sure you pay on time.

Financial services firms operating in the UK have shifted more than $1.6 trillion worth of assets and around 7,500 employees to the European Union ahead of Brexit, with more likely to follow in the weeks ahead, according to a report from Big Four accountancy firm Earnest and Yong (EY).

Tracking 222 of the largest financial firms maintaining significant operations in the UK, the EY report notes that around 400 relocations were announced in September alone amid uncertainty about the City of London’s continued access to the bloc in 2021.

EY also noted that there was very little movement in the first half of 2020, owing to the emergence of the COVID-19 pandemic and its impact on the banks. Businesses are now accelerating plans to relocate staff and operations from the UK ahead of its exit from the EU on 31 December and a possible second wave of COVID-19 lockdown measures forcing borders to reclose.

Since the UK’s vote to leave the EU in 2016, 44 financial services firms in London have created 2,850 new positions in EU nations. The biggest business gains have been seen in Dublin, Frankfurt and Luxembourg.

“As we fast approach the end of the transition period, we are seeing some firms act on the final phases of their Brexit planning, including relocations,” said Omar Ali, UK financial services managing partner at EY.

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“The time has now passed for firms to rely on short-term equivalence assessments that would align to EU rules, and the sector’s attention is increasingly focused on the longer-term outlook,” Ali added.

Major US banks with operations in the UK have begun to transfer their assets to the EU, such as JPMorgan, which has moved about $230 billion to a subsidiary in Frankfurt. Goldman Sachs has also planned to relocate over 100 London staff.

According to figures released by StockApps, the combined market cap of the five largest banks in Europe fell to $233.1 billion in August, a decrease of 42% since the start of 2020.

The massive loss in value for European banks can be attributed to the COVID-19 pandemic and its effect on consumer demand. Major European lenders were hit by a wave of financial losses during Q2, sinking their market value.

HSBC, Europe’s largest bank by asset value, saw its market cap plunge 45% to $88.1 billion in August, down from $161.5 at the beginning of the year. This figure began to slip even before the COVID-19 pandemic reached its height, falling to $114 billion in March.

Stark losses plagued Europe’s other major banks as well; PNB Paribas, Banco Santander SA and ING Group – the second, third and fifth largest banks in Europe – saw respective market capitalisation slides of $19.7 billion, $33.27 billion and $15.2 billion respectively.

Lloyds suffered the heaviest losses of the “big five”, its market cap standing at $25.1 billion in August, down from $58 billion at the end of December 2019 – a 56% drop. The fall stems from its £676 million losses in Q2, a drastic fall from the £1.3 billion profit it posted in the same period during 2019.

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“The outlook has clearly become more challenging since our first-quarter results, with the economic impact of lockdown considerably larger than expected at that time,” Lloyds CEO António Horta-Osório commented on the losses at the time of their release, which caused Lloyds to set aside an additional £2.4 billion as debt provision.

You need to protect yourself and your children, if you have any, during this process. A critical part of this is making sure your finances are protected as well.

The last thing you want to do is make a mistake that can cost you your home, savings, or retirement. Until your divorce is finalised, follow these three tips to keep your money safe. If you don’t, you may find paying for the next stage of your life to be a struggle.

Don’t Blow Your Budget

Now is not the time to reach into your joint checking account to splurge on a vacation, no matter how badly you need it. It’s okay to use your joint account for the usual expenses, but keep in mind every financial move you make is going to be under scrutiny. If a judge gets the impression you are trying to take more than your share, it could come back to haunt you later.

One big expense you’ll have that is out of the ordinary is a divorce lawyer. Your soon-to-be ex will have one, too. If your divorce is amicable, you may be able to come to an agreement about how much is fair for you to each take out of your accounts to use for this purpose.

If you are at each other’s throats and you can’t agree on anything, filing for a legal separation may be the best option. This would force you to come to an agreement about how you are allowed to use your money until your divorce is finalised.

It’s okay to use your joint account for the usual expenses, but keep in mind every financial move you make is going to be under scrutiny.

Know the Value of Your Assets

You and your ex need to evaluate and clarify your assets to make sure you know what they are and how much they are worth. This could include any of these types of property and investments:

• Your home
• Your bank accounts
• Any stocks or bonds
• Your pensions
• Your life insurance policies
• Any vacation homes
• The furnishings in your home
• The artwork you’ve collected
• Your appliances
• Your vehicles
• Any recreational vehicles
• Your boats
• Any small businesses you own

Once you’ve identified all of your assets, you’ll need to identify what belongs to you, what belongs to your ex, and what belongs to both of you. If you can’t agree how to divide the assets that belong to you both, this may be decided during mediation or negotiations in court.

Get an Attorney and a Financial Advisor

You may be considering skipping hiring an attorney because you are still on reasonably friendly terms and you believe you can handle negotiations yourselves. Divorce laws are complicated, and they differ from state to state, so it pays to follow the advice of specialist attorneys.

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An attorney can also make the divorce proceedings quicker and take some of the stress and burden off of you. You can let them handle the paperwork, negotiations, and anything else that is taking up so much of your time that you have no energy left for self-care.

A financial advisor is also critical during this time, especially if you aren’t very financially savvy or you have valuable assets. If your spouse has been handling most of the bills, you may not understand enough about your expenses to be sure you walk away with enough to start over.

Even if you and your ex agree on most things and you agree this is for the best, divorce can still be an emotional time. Having impartial professionals on your side who can speak in your best interest can make this process much easier for you both.

Shell’s Q2 earnings report, released on Thursday, revealed that the company had suffered a net loss of $18.3 billion, a striking departure from its $3 billion profit during the same period in 2020 and a $2.7 billion profit in the first quarter of 2020.

What might have been Shell’s worst quarter in company history was saved by its oil trading business, which went some way towards shoring up profit margins.

Investor attitudes were largely unaffected by the disappointing earnings report; shares were only down by 0.5% in early London trading. A reason for traders’ optimism can be found in Shell’s adjusted income: while the reported $663 million represents an 82% drop from the same period in 2019, it greatly surpassed analysts’ expectations of a $664 million loss.

However, Shell was still forced to downgrade the value of its oil and gas assets, confirming $16.8 billion in post-tax impairments costs in its release.

Shell CEO Ben van Beurden praised the company’s “resilient cash flow in a remarkably challenging environment” in a statement on Thursday.

“We continue to focus on safe and reliable operations and our decisive cash preservation measures will underpin the strengthening of our balance sheet,” he continued.

In April, Shell announced its intention to scrap all executive bonuses for the financial year, in addition to cutting budgets and costs in an effort to save up to $9 billion. It may also consider issuing voluntary redundancies later in the year.

You can invest in the stock market directly, meaning when you decide when, how much, and in what way you invest.

For that, you need to have experience in trading on the stock market, the necessary information on market developments, a short-term and long-term strategy, the necessary accounts and trading tools, and most importantly - investment assets.

You can also invest in the stock market through investment funds, which is much more comfortable.

Investing in the Stock Market or Not

This has become a rhetorical question these days. Investing in the stock market is the best way to fertilise your capital and finally make your capital work for you. However, it’s necessary to know how to invest directly in the stock market, and to approach it extremely carefully and only after generous preparations.

If you don’t have the necessary knowledge to be able to invest in the stock market on your own, the best option available to you is through investment funds. Anyone who engages in trading on the stock market and doesn’t have the necessary knowledge is doomed to failure, and even worse - will lose all their invested money.

About 80% of trading on the stock market is done by insufficiently professional traders. That’s why there’s always a great opportunity to make money on the stock market.

Direct Investment in the Stock Market

Direct investment in the stock market means that investors independently hire brokers to whom they give instructions for buying or selling items with which they want to trade on the stock market. They are offered many opportunities: from trading the best shares in the UK, raw materials, derivatives (financial), currencies, cryptocurrencies…

In this sea of offers, investors need to decide what they want to trade with because each of these products requires a different tactic, parameters, trading rules, etc.

In addition to this, it’s necessary to decide the dynamics of trading. This refers to the dynamics with which they want to monitor changes in the stock market. From changes at the level of seconds to changes at the level of days, weeks, or months. The faster the dynamics, the greater the knowledge and self-control required.

Direct Investment Costs

Investing in the stock market isn’t cheap. In addition to the funds you’re willing to invest, it’s necessary to take into account the investment costs, which aren’t small at all. They are different in relation to the amount of planned investment, trading dynamics, conditions under which you start investing…

The most common costs to count on are the cost of opening a trading account, the cost of a broker, the cost of the stock market, the cost of buying, the cost of selling, the cost of taxes, and the cost of withdrawing funds. All of these costs can take away the profits you make through trading, and it’s extremely difficult to make a net profit.

And note: direct investment isn’t recommended for so-called “small“ investors.

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Investing in the Stock Market Through Investment Funds

Investing in the stock market through investment funds is truly the most comfortable way to invest. The investment fund, as a collective investment institution, is designed to help “small“ investors to participate in world markets under the same conditions as “large“ investors. Funds of investment fund members are collected and invested under previously agreed conditions (investment fund prospectus).

The costs are calculated as if invested by one investor and are divided among the members of the investment fund. This reduces investment costs and most of the funds are invested.

Advantages of Investing Through Investment Funds

Investing in stock markets through investment funds has many advantages over direct investing. Let’s list some of them:

• Reducing investment costs
• Provided professional investment management by portfolio managers
• Monitoring market movements by consulting firms
• The possibility of investing in several types of products
• Portfolio diversification by industries, currencies, and geographical diversification
• The ability to choose the risks you want to accept
• Constant control of your investment
• Maximum liquidity of funds
• Cost-benefit transparency

Reducing Investment Risk

The risk of investing in the stock market is always present. We can’t avoid it but we can define and diminish it.

• Defining risk means determining exactly how much risk you’re willing to accept, and therefore how much profit you expect from your investment.
• Risk reduction is achieved by diversifying investments, while the risk is higher if you’ve invested in a smaller number of products.

If you want low risk, you’ll invest in a money market fund, which invests only in bills, bonds, bank deposits, and the like. If you’re willing to accept a higher risk, you’ll look for a balanced fund, which invests part of the money in bonds and part in shares.

For investors who accept even greater risk, the chosen fund is an equity fund. For investors who want a high level of risk, the right choice are hedge funds, Forex, and cryptocurrencies.

In a report on its second quarter earnings, Shell announced that it would cut between $15 billion and $22 billion from the value of its assets due to the collapsing price of oil and unlikeliness of a swift recovery.

Shell also predicted that the price of Brent crude oil would average at $35 per barrel through 2020, with a potential return to $60 per barrel – where it began this year – in 2023. The price of Brent crude has seen something of a rebound in recent weeks and is now trading at $41 per barrel. At the peak of the oil crisis, it traded at just $20 per barrel.

“Given the impact of COVID-19 and the ongoing challenging commodity price environment, Shell continues to adapt to ensure the business remains resilient,” the company said.

Shell’s warning follows a similar announcement from BP earlier this month, alerting investors to the fact that its assets may be worth $17.5 billion less than previously thought.

The first half of 2020 has seen oil prices plummet, driven in large part by the COVID-19 pandemic and resulting shelter-at-home orders that saw air travel halted and a steep decline in the use of motor vehicles and public transport.

Market conditions were further stressed by the brief Saudi-Russia oil price war that launched in March, vastly inflating the global oil supply. The combination of stressors in April saw US crude oil futures reach negative prices for the first time in history.