Business Lesson: When is The Best Time to Buy Shares?

Finding the right time to buy stocks is a key to success in the stock market. One of the basic principles of stock investing is to buy low and sell high. The best time to buy stocks is when the prices are as low as they will be. Following are the key factors and tips that you need to look at when finding the best time to buy stocks and shares:

1) The best time to buy stocks is during a recession: When the industry is in a recession, it is definitely the right time to start searching for company shares that are selling for less than they are actually worth. During a severe recession, share prices on premium companies can be very attractive, and that will be the right time to enter the market.

2) Another best time to purchase stocks is when there is a new public offering: When a new company reaches a certain stage in its growth, it may decide to go public with an initial public offering (IPO). An IPO can be viewed as the ultimate sign of a company's success. Historically, IPOs have always been under-priced. This can lead to significant gains for those who have bought an IPO at the offering price and then selling the stock soon after it starts trading on the open market.

3) When the bear market is coming to an end: A bear market can be the best time for investors to pick profitable stocks.

4) When there is a widespread panic-selling in equity markets: Panic selling occurs when investors rush to sell their shares in a panic. This will often create some excellent buying opportunities for well-informed traders and investors.