Thesis
CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter brings an introduction on background of the study followed by problem statement, research objectives, organization of study, research significant and also limitation and future research implication.
1.1 Background of the study
Stock market plays an important role within the economy. The stock market is one of the most important sources for companies to raise money and investor to earn massive income. The attractive features of investing in stocks encourage more investors to invest more in security market and some companies actively involved in the stock market to increase liquidity by trading in their own shares.
Stock valuation is an important part on the dynamics of economic activity. The stock market can be considered as the major indicator of a country 's economic strength and development. The stock market is also an indicator that how well is the country 's economy is doing. Investors will buy stocks if they are confident of that country’s economy.
Investing is making your money work for you by getting your money to generate more money. Bursa Malaysia indicated that investing in stocks has consistently proven to be one of the most profitable forms of investment available. Every investor no matter is individual or organization hope to maximize their expected returns at some preferred level of risk when trading in the stock market. However, it is risky while investor putting money into an uncertainty investment. Normally, investor wish that they will get high return with low risk exists. In fact, investors will only get the higher return with the higher risk.
In order to maximize their profit, the traders must sell the share when the price is high and to buy it when is low. Investments in shares are the riskiest compared to other investments such as bond and debenture. Therefore, a lot investors invest in share with prediction that stock’s price will be increased in the
INTRODUCTION
1.0 Introduction
This chapter brings an introduction on background of the study followed by problem statement, research objectives, organization of study, research significant and also limitation and future research implication.
1.1 Background of the study
Stock market plays an important role within the economy. The stock market is one of the most important sources for companies to raise money and investor to earn massive income. The attractive features of investing in stocks encourage more investors to invest more in security market and some companies actively involved in the stock market to increase liquidity by trading in their own shares.
Stock valuation is an important part on the dynamics of economic activity. The stock market can be considered as the major indicator of a country 's economic strength and development. The stock market is also an indicator that how well is the country 's economy is doing. Investors will buy stocks if they are confident of that country’s economy.
Investing is making your money work for you by getting your money to generate more money. Bursa Malaysia indicated that investing in stocks has consistently proven to be one of the most profitable forms of investment available. Every investor no matter is individual or organization hope to maximize their expected returns at some preferred level of risk when trading in the stock market. However, it is risky while investor putting money into an uncertainty investment. Normally, investor wish that they will get high return with low risk exists. In fact, investors will only get the higher return with the higher risk.
In order to maximize their profit, the traders must sell the share when the price is high and to buy it when is low. Investments in shares are the riskiest compared to other investments such as bond and debenture. Therefore, a lot investors invest in share with prediction that stock’s price will be increased in the
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