Shares/Stock The Benefits of Owning Shares

[Faith B]

The advantages of owning shares are not all financial. The most significant benefit is that you can diversify your investments and hold them for a long period of time. This is important because shares have a higher risk of losing value in the short-term, and they also tend to grow more slowly than other investments. That means that you can benefit more from owning shares if you hold them for a longer period of time.

As a shareholder of a company, you can also benefit from the money the company makes by investing in it. Typically, shareholders are paid dividends. This income is distributed to shareholders as a portion of the profits. Dividend payments are based on a number of factors. The level of retained earnings, net profit, working capital position, and expansion plans are some of the factors considered by directors when determining whether to distribute dividends to their shareholders.

1. Owning shares in a company with a large market capital can provide you with income and capital gains. The dividends a company pays out are a part of its profit. The board of directors will decide whether to distribute the dividends to shareholders. The decision will be based on several factors, including the company's net profit, retained earnings, and future expansion plans. A diversified portfolio provides you with the best possible return while reducing the risk.

2. Owning shares in a company with a large market capital also helps you increase your investments. The benefits of owning shares are numerous, especially if the company is profitable. When the price of the company's stock increases, it allows you to take advantage of the increased value and profit. In addition to dividends, owning shares also gives you the opportunity to participate in the growth of the company. This means that you can earn money from your investment, even if you don't have a large amount of money to invest.

3. Owning shares in a company with a large market capital can give you a competitive advantage in the long run. It gives you the freedom to sell your shares when the time is right or to use the money to invest in the company. When you sell your shares, you can earn cash from your investments or even put it back into the company's growth. This allows you to take control of the company and benefit from the growth.

4. One of the biggest advantages of owning shares in a company with a large market capital is its liquidity. If you're looking to sell your shares, you can do so quickly by logging on to various websites to sell your shares. This is a great way to liquidate your portfolio without having to sell your house. You can even trade your shares online, and the exchange will match the price you set for your shares.

 

[Deleted member 28127]

Thinking only about the financial part isn't always good because people neglect experience and only think about earning on owning shares not more than that and this is a loser thinking.

 

[Sotherefore]

Well for me I won't just consider to have a share in a particular company because most companies may not really be trusted over here to a point of buying a share that worth millions of naira ,but a situation in which the company is really trusted then I may consider to invest in with them.. in general investment on something like this is what I have never planned for as I said earlier but I will be very much interested to invest in a property, when people are investing in share they are not in direct control of the assets but when people are investing in a property they have a direct control of whatever asset they are investing on and those are the sort of investment and I am interested, I don't just want a particular business organisation to determine the amount of profit I am making but taking full control of your property is the best investment anyone can do .. if I am investing in property or maybe real estate I may not really have to be so concerned about the legitimacy of a particular company since most of my assets will be controlled by me...we all have our personal decision.

 

[Alexandoy]

When I checked my ATM account today, I saw that I received the promised dividend of my stocks. The amount is not much but still it is money and I consider it as passive income which motivates me to buy stocks. However, it is not easy to trade because I am not well versed with stocks yet. Even if the stocks I own is blue chip there is still the risk involved if the market price will sink. A friend assured me that my stocks are on the safe side because it is of the biggest bank here. Moreover, the owner of the said bank is the richest family in our country. They own an array of huge businesses like the biggest chain of malls here.

I have to agree about the liquidity because I have checked on that angle. A friend who also owns the same stocks as mine said all she has to do is to call the broker if she wants to sell. Within the day the stocks can be sold and if not it can be sold on the next day. Within 3 days the proceeds will be deposited to her bank account. It is that quick to get the money unlike when the investment is in real estate which can take a long time before the property can be sold.