What Is Benefits Of Investing Money In Stocks?

 A stock is an ownership certificates of any company. Stock includes Plant & Machinery, Land & Building, Machinery, Equipment etc. A share is also referring to the stock of a particular company where a company gives a certificate of being their company’s shareholder. A single share of the stock represents fractional ownership of the company. And a fraction of the company’s earnings gives the voting power.

Stock can be buying and sold privately on the account stock exchanges of their company, or buy and sold publically on National Stock Exchange of India (NSEI) and such transactions are typically regulated by governments to prevent from fraud, protection of investors and benefit of the larger economy. The stocks are deposited with the all information in the electronic format also known as DEMAT account.

As new shares are issued by a company, the ownership and rights of existing shareholders are compensated to them by returning their cash profit to sustain or grow the business. Stock options, issued by many companies as part of employee compensation only which do not represent ownership but represent the right to buy ownership in future time.(GDAX)

Benefits of investing in stock

There are many benefits of investing in stock or share. The benefits are:

• Value Investing

Equity Markets have the 2 features– Bulls and Bears. Bull is when the markets are in going up, and Bears is when the markets are in going down. Value Investing means buying or holding the stocks at every bear or negative movement and selling at every positive or bull movement and making profits on your investments.

• Diversification

Purchasing stocks of companies operating in different sectors as well which helps in optimizing the asset-allocation and provides diversification.

• Ownership in the Company

Investing in a stock or share means taking on a partial ownership in the company. Investing in the stock market brings the benefit that also benefits the owner of the company. Shareholders can vote in company decisions. And the annual report of the company is sent to the stockholders to let them know the growth or fall of the company and future risks and possibilities. It proves loyalty and gives you a sense of ownership.

• Protection against inflation

As the inflation rate is increasing day by day so investing in shares gives the protection against inflation and provides good and enough returns and growth.

• Invest in small amounts

Now the company don’t need of having a good amount for investing. It is possible to invest in equities with a very little amount via the Systematic Investment Plan (SIP).

• Contribution in Nation Growth

With the investment in stock markets, an individual earns a good return or company also earns a good returns. With good returns India’s economy also grows and develops efficiently.

• Well-Regulated and Transparent

Stock markets are well-regulated and transparent that suits everyone’s needs in terms of Valuations, Pricing, and Disclosures of amount, share time period and all other information to ensure that none of the investor is in risk anytime or anywhere.

• Opportunity to invest in markets

Stock Market gives the opportunity to be a global investor by investing in shares of companies listed on Indian Stock Exchanges.

Stock market is the contributions important part in the economy if the company wants to grow financially along with growing economy than the company have to invest in shares and stocks.

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