The modern Thai capital market traces is established in 1960 for support economic growth and industrial, security and development quality’s life of people. It get a lot of attention from people because can bring their saving money to invest in the capital market and it provides opportunity for people who want to be owner business and industrials in Thailand. The investment in stock market is so popular of people in the country and the world. However, saving money with investment in stock still have some things that people must know before decision to investment. Therefore, saving money with investment in stock market should have three basic-knowledge: appropriate person, profits and risk of variance price’s stock.
The first of all, basic-knowledge's saving money with investment in stock is appropriate person. The most investors are retirement people because they want to have safety of their retirement incomes. In 2005 found, many elderly people have increasing a number of private investment in stock and securities. In addition to retirement people, it still suit people who have standing money or savings that this money is already deducted personal expenses and money for plan in the future. Because investment have many risks which may be cause of their financial problems. Therefore, people have savings or want saving money in old age should decision investment in stock.
The second, investors should have basic-knowledge about profits for choosing saving money with investment in stock because profits of investment in stock have two forms. Investors will received profits from dividend. They receive dividend from invest equity instrument and mutual fund when company has capital gains only. Furthermore, other form of profits are interest. If investors want profits in form of interest, Investors will invest bond. When bond matures, they will receive interest as rate specified in bond. However, investors can choose profit to receive with themselves. Good investors should invest every form for reducing risk of investment in stock.
Finally, risks of variance price’s stock is basic-knowledge for decision to saving money with investment in stock. The economic is first factor that price of stock have variance. If the economic is well, price of stock will increase because investors have idea that this time, companies will have little chance for loss. For example when the economic is well, people have high spending. Companies will have more sales and more profits. Companies will also pay more dividend or more interest. In contrast, the economic isn’t well. Sales and profits of companies will lower when people have low spending. Therefore, price’s stock will lower because investors will distribute stock of companies into capital market. Industrials are second factor that price of stock have variance. Price’s stock of companies will increase when industrials go ahead because investors think, price’s stock will increase as operating result of companies. When operating result of companies is low, price’s stock will lower because investors is worry for risk of variance price‘s stock. Accordingly, investors will distribute stock into capital market. Moreover, third factor of variance price’s stock is operating result of companies. This factor is cause strategy of companies, type of business and ability of administrators. For example in time of bad economy and bad industrial, yet administrators have high ability. companies will have high operating result.