Investments, especially company shares have been one of the prime ways of making sure a sound retirement for most of the people. Once they get in to the stock market, they may go on investing all what they have for well known companies for profit. When this is practiced, there is a golden rule; never put all your eggs in one basket. No company has proved that they will long last forever making profit year by year. As humans, companies also have their peaks and valleys. If your income (dividends, interest) is based on one company, you will do really bad if your company does the same. To avoid this, you may have to consider investing your money in different businesses.

There are four main points to be considered when making an investment in the stock market. First; the Risk; how safe is your money? What’s the worst thing that can happen to your money and how can you possibly recover any loss? Second; the Return; what is your ROI (return of investment / rate of return)? Are you expecting an income from the investment or you just want your investment to grow in value so you can sell it later for a higher value? What are the guarantees for this income or the growth value? Has this company proved it in the past? Third; Access; how easy is it to get the money back? If you are to sell your investment, will there be people to buy it? If you sell your investment, are there any penalties to be paid? Is there any hidden cost involved in selling? Fourth; Charges; how much money will be taken as charges from your investment? Will those charges add any value to your investment short term and long term?

Yes, so many questions to be asked before you make your move. You may also have to consider whether the company you are dealing with is registered for any compensation scheme. Also, you should consider the tax schemes applicable for investments to see whether they give you the advantage you expect.