The stock market gives a platform for all investors who are seeking investment opportunities. It does not discriminate whether you are small or big and retail or institutional investors. It is a risky segment of assets than other fixed-income securities, but it gives an alpha return for bearing extra risk. Due to the lack of financial literacy small segment of people invest in the Stock market and other reasons because of the risky nature stock market.

I do not strongly focus to invest in the stock market but I give some reasons why we need to invest in the stock market.

1. For Diversification: Diversification of assets in which you have invested is important for optimizing return and minimizing risk. One Quotation is popular in finance ” Do not put all eggs in a single basket”, it means as much as possible you need to diversify your assets class. Generally stock market gives you a premium return which covers inflations and another risk type that helps to optimize your return.
2. For Indication of the economy: The stock market is the mirror of the economy so it is considered an economic indicator. Generally, it reflects the overall economic condition before other indicators it alerts so it is taken as a leading indicator. For whom they are interested in Business, Finance, and economics and professional background from such areas are need to invest in the stock market for we watch closely when there is our investment.
3. For Marketability and liquidity: The transaction of the stock market is simple, not complex as as other classes of assets. You can buy and sell whenever required.  Similarly, you can convert your investment into cash and other liquid assets as per your need. Another side transaction and brokerage costs are lower than other classes.
4. Dual Side of  Return: Two kinds of return provided by the stock market i.e. dividend and capital gain. The company distributes dividends yearly after satisfying all other stakeholders and as well market provides capital gain according to the price fluctuation by the performance of the company.
5. Start from Negligible Amount: For an investment in the stock market, you do not need a huge amount, instead of saving in the bank you can start from a small amount.