Previously the advantages or the reasons why you should invest in the stock market was discussed. In the first part of this two part series, we discussed about the first three reasons why you should invest in the stock market those are, potential for greater returns, part ownership of the company you are investing and belonging to a special group of people. We continue by discussing the next 4 reasons in part 2 of this 2 part series. Should you wish to view the entire article, check out my blog.

Previously the advantages or the reasons why you should invest in the stock market was discussed. In the first part of this two part series, we discussed about the first three reasons why you should invest in the stock market those are, potential for greater returns, part ownership of the company you are investing and belonging to a special group of people. We continue by discussing the next 4 reasons in part 2 of this 2 part series. Should you wish to view the entire article, check out my blog.

4.) One of the best if not the best vehicle of investment - In 1986 the Philippine stock market recorded its highest return rate at 224 %. The lowest return rate was recorded in 1997 at negative 41 %. The average return in 20 years time however ranges from 24 % to 28 % per year. It can therefore be clearly seen that while it is true that investing in the stock market has its up and down, in the long run long term investments in the stock market still yields a greater return. Hence it can be concluded that the long term investors always benefit and that the stock market is still one of the best vehicles of investment.

5.) Helps you become more financially literate and inspires you to increase that knowledge - Investing in the stock market forces you to go over the business news. It also helps you give significant meaning to the major news headlines. News for you is not something to be discussed in chit chats, but rather you view it as something that will have an impact on how the market behaves. You are forced to understand words that are foreign to you. You will become more sharper intellectually as you are motivated to keep on reading. If you dozed off in your your economics class in high school or college, this time you will be pulling your hair apart just to figure out what inflation means. you will be motivated to become a life long student.

6.) Helps you understand the importance of being online and getting instant "knowledge" in this age of information technology. - Man has gone a long way from the stone age, the iron age, bronze age up to the industrial age. Now we have moved one more step ahead as we are right now in the "information technology age" where knowledge is power. Trading in the stock market by means of utilizing information technology certainly gives meaning to the adage that "knowledge is power." Years ago when I was still in college I wanted to know what it is like to invest in the stock market as I was intrigued by what I see in the movies when traders shout buy or sell. Unfortunately, I did not invest back then because of the lack of information, capability and most of all the lack of capital to do so.

With the advent of the internet age, information is everywhere through the World Wide Web. Add to the fact that you can now trade online. With this opportunities that come into play, it was now possible for me to trade in the stock market. I monitor the news online, I buy and sell online, I transfer money to my accounts online and best of all it is now possible to trade globally and invest in other stock markets around the world with the use of your computer. Although this is an entirely different arena but the stock market trading principles still come into play.

7.) Investing in the Stock Market helps build the nation -This is the most noble objective and advantage as to why you should invest in the stock market. One of the main reasons why companies want to get listed in the stock exchange is that they want to infuse more capital into their business. The reason why they want more capital is they want to expand the business. More capital means more business, more business means more jobs, more jobs means more needs of the average Filipinos are being met. More business also means more taxes for the government. In a sense when you invest money in the stock market you are actually helping create jobs and at the same time more taxes for the government. This increase in economic activity helps build the nation.

These reasons certainly make a compelling argument as to why you should invest in the stock market.