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To benefit from the stock market...

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@madushanka
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Hello Steem Community,

I very first time use Steemleo.com for writing about to benefit from the stock market. I very recently followed about stock market in my country and still learning more. When investing in a stock market, many investors think that the returns are only going to increase. But further study shows that this is not the right idea. The stock market is a long-term investment. Every investor is looking for short-term returns.

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Investing in the stock market is what makes a person the owner of a company. If a person buys a portion of the money he / she owns at the market price, he / she becomes a proprietor of the shares purchased. The person owns the company until the person repurchases the shares he has purchased. The owner of a company must also be prepared to endure both profits and losses. The opportunity to own a company is also an advantage for an investor.

Investment in the stock market can identify a number of benefits to an investor. Capital gains are one of them. Another is the dividends paid by companies. Another benefit is that the company offers shares to the investor at a lower price than the market price. Some companies issue shares to their shareholders for free. These are some of the additional benefits that a stock market investor can gain.

Capital Gains is the benefit of buying stocks at low prices and selling them at higher prices. In some cases, it could be a capital loss. That is, if you sell the stock for less than the purchase price it is a capital loss. It should be remembered that there is no fixed period for the return of capital.

No company is mandatory to pay dividends. When a company makes high profits, it can declare a higher dividend or lower dividend. In some cases, companies can make profits and pay dividends. An investor should keep in mind that the company does not profit only when the market as a whole grows and when the market as a whole drops.

Various factors affect the profitability of companies. Among those factors is the company's management. It is important to have a team of talented managers who can turn a company into profit and reach the goals of the company. There should also be good demand for the company's product. A number of factors, such as competition among companies, market share, etc. can influence profitability. Thus, not all companies suffer a loss or simultaneous profit as the circumstances of the companies are different.

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Listed companies issue free shares to their shareholders at certain rates, without charge. It was also called bonus stock a while ago. This gives the investor the opportunity to sell or sell shares in the market for free or to take advantage of them. A rights issue is a way for a company to raise additional capital to execute a future plan. Given the history of the stock market, it is clear that a large number of claims have been made, and not just when the market is up.

Investors have the option of investing in debentures at higher interest rates than the current interest rates in the country. Investors who invest in such debentures will receive interest at the agreed rate, and the interest on the debentures will not be determined by the market's upside or down. It is a good thing that a country's stock market continues to rise.

I want to learn more about stock market knowledge for future advance. I wrote only few things here. The above shows that a stock market can generally go up or down and is influenced by a variety of factors, such that the market does not closely correlate with the return or return to the investor. It also shows that a stock market is not essential for the return. Accordingly, it is necessary to invest in the stock market in the long term. Thanks for reading.


Posted via Steemleo | A Decentralized Community for Investors