[Participatory] "Is the stock market gambling?" "Where do I buy them?" Please help answer these 10 simple questions from beginners in the comments section!

When you continue to invest, don't you ever get asked simple questions by people around you or acquaintances who want to start, such as
"What is investing actually like?"
?

There are many difficult terms written in books and on the internet, but the "raw voices" and "realistic perspectives" of investors who are actually managing their money should be the best hints for those just starting out.

So, this time, I have collected "10 questions that beginners ask first."

I will write my own answers quickly first, so I would be happy if you could share your opinions and experiences in the comments section, such as "This is how I would answer!" or "I used to misunderstand this back in the day (lol)!"

Once everyone's answers are gathered, I would like to post them as a "Realistic Answer Edition" for those who are about to start investing.

10 Questions from Beginners (& My Answers)

Q1. Why invest instead of saving?

My answer: To protect the "value" of money. Even if you deposit it in a bank, there is almost no interest, and as inflation (rising prices) progresses, the real value of your money decreases. I choose to invest to grow my assets at a speed that can keep up with inflation.

Q2. Where can I buy stocks?

My answer: You can buy them by opening an account at a securities company. There are brick-and-mortar stores in town, but "online securities" (such as SBI Securities or Rakuten Securities), where fees are significantly lower and everything can be completed with just a smartphone, are the mainstream.

Q3. How should I choose stocks? (There are too many to choose from)

My answer: You don't have to narrow it down to one company from the start. For beginners, the standard approach is to choose an "index fund (investment trust)" that allows you to invest in hundreds or thousands of companies all at once. If you want to pick individual stocks, it's also fine to look for companies you use in your daily life or companies you like.

Q4. If I buy stocks, will I definitely get shareholder benefits?

My answer: Not necessarily. Many companies do not offer benefits, and you must hold the required number of shares on the "record date."

Q5. What taxes are involved in stock investment?

My answer: In principle, a tax of about 20% (20.315%) is applied to the profits and dividends you earn. However, you can make this tax zero by using the "New NISA," which makes profits tax-free.

Q6. Can't I invest if I don't have a large amount of capital?

My answer: That's not true at all! Nowadays, there are plenty of investment trusts you can buy from 100 yen and single-share investments (less than a trading unit) you can buy from a few thousand yen, so you can easily start with just your pocket money.

Q7. How many shares can I buy stocks from?

My answer: Basically, it's in "100-share units," but recently, major online securities companies have established services (such as S-kabu or Kabu-mini) that allow you to buy "from 1 share."

Q8. Is the stock market gambling?

My answer: The honest answer is "it depends on how you do it." Betting your entire fortune on short-term fluctuations tends to be gambling, but investing in companies around the world or the entire market over a long period of time while diversifying is "asset building" that rides the wave of economic growth.

Q9. Do I always get dividends if I buy stocks? When do I get them?

My answer: Not necessarily, as some companies do not pay dividends (they reinvest in growth). If they do pay, it is generally deposited about 2 to 3 months after the record date.

Q10. Can I invest too?

My answer: Anyone who is an adult living in Japan and has "surplus funds that won't be needed for a while" separate from living expenses can do it! It's fine to acquire knowledge as you go.

Please let me know in the comments section!

I've listed all 10 questions, but what did you think?

• "Here is how I would explain the answer to Q8 about gambling"

• "Regarding stock selection in Q3, this is what I bought first and failed (succeeded) with!"

• "I'll try answering just one"

Even just one answer or a single word is very welcome!

Please share your feelings from when you first started investing or perspectives you've gained through practice in the comments section.

I look forward to your comments!

Click here for the recommended answers for investment beginners, compiled from everyone's comments