benefits of investing in stock market

Benefits of investing in stock market


The major benefit of investing in the stock market is that investors get the chance to earn more money,
Over time, if the stock market rises in value, the prices of a particular stock can rise or fall. However, investors who have put their money in stable companies will see profit growth.

There are many benefits to investing. Let’s find out how this common form of investment can be an effective way to make money. Here are some of the benefits of investing in the stock market

Capital Growth – Selling a share for more than you paid for it is known as Capital Gain. This occurs when an individual experiences a significant rise in share prices and is one of the long-term objectives of investing in shares.

Dividends – A dividend is a cash reward given out to shareholders as part of the profit made by the company at the end of each financial year. The larger the units of the shareholdings one possesses, the more money one receives.

Liquidity – By nature, shares that are listed are a very liquid product and can be bought and sold quickly over an exchange platform. No hassle of involving a broker or transferee and at a relatively low cost as compared to other financial products. Trading on an exchange also allows one to sell part of the share parcels other than redeeming the whole lot.

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Shareholder – Benefits Some listed shareholder companies from different market sectors including entertainment, retail, hospitality, and financial services offer lavish discounts to shareholders.
when they buy goods or services from the companies or their affiliates. However, in most scenarios, lots of shares need to be owned to qualify for such benefits

Bonus share – Bonus shares are when a company is not in the position to pay a dividend to its shareholders. Despite earning decent profits for that quarter.
Bonus shares are additional shares given to current shareholders without any additional cost. Based upon the number of shares that a shareholder owns.
For example – A company issue a bonus share in the ratio of 1:3, which means one new equity bonus share of Rs 10 each for every 3 existing equity shares of Rs 10 each fully paid up

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