Benefits of buying stock?
1 answersQuestion asked ( August 05, 2009 , Shopping / Finance )
Hi. I have some extra money and i hope to multiply it by investing in the stock market. I would like to understand the benefits i get by buying stocks
Answers to : Benefits of buying stock...
Answer
Investing in a stock market is a two sided coin. There are wins and there are losses. I don’t believe there would be a situation when a investor wins or loses always. If you do have a risk appetite, the stock market may be a good place to try multiplying your money. But keep in mind, there is always a risk involved for an investor. Investing equities means parting money to an organization as part owners of the organization. You can make your money either by capital gains (through invested capital appreciation and sale of stocks when appropriate) or draw dividends (share of profits paid to stock holders by the company in return for their investment. No sale of stock is required in this case). Please do keep in mind that the return that you may receive on dividends may not necessarily always be high when compared to capital gains.
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