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Advantages Of Stocks

There are many advantages of stocks, espacially for the long term investors, some of which are;

  • If you own stocks of a company no matter how large the company is or how small your stocks are, you become a part owner of that company. You can be proud to call it your company.

  • Dividends; you share in the firm's profit and in their losses in a way. Dividend is a periodical payment of profits to stock owners. As companies make profits they set aside some portion of such profits to pay stock owners, as returns from their investments.

  • Profit; you have a right to sell your stocks at a higher price than you paid for, whenever you deem it fit. Learn how to trade stocks.

  • There is the possibility of becoming a director or even the chairman of the company depending on the amount of shares you have. Most of the directors are appointed based on the amount of stocks owned in that company.

  • You have a right to partake in bonus declared-which are additional stocks assigned to share holders apart from dividends.

  • You can use your stock certificate as collateral for a bank loan.

  • Advantages of stocks includes the possibility of transfering your investments (stocks) from generation to generation.

  • In the event of liquidation, liability of the stock holder is limited to the amount invested.


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