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Website design By BotEap.comWho can benefit?

Website design By BotEap.comPeople who want to gain exposure to an asset that has the potential for capital growth (albeit volatile) and income.

Website design By BotEap.comWhat is it?

Website design By BotEap.comA stock is a unit of ownership in a company. It can be a publicly traded company or an unlisted company. A listed stock is usually very liquid, which means that there is a buyer at market price. However, the price is volatile and goes up and down with market sentiment and the luck of the company.

Website design By BotEap.comThe shares of an unlisted company are not very liquid. You need to find someone who wants to buy your share. It can be difficult to determine what is a fair price, as stocks are rarely traded and there is little public information.

Website design By BotEap.comYou can buy shares of a national company or you can also buy shares of foreign or international companies. Buying shares in a company abroad is often done through mutual or managed funds. There is additional currency risk in buying stocks abroad, although currency risk can be offset with currency hedging.

Website design By BotEap.comYou normally own a share in a limited liability company, so you are not personally liable for the debts of the company, although you are at the bottom of the hierarchical order if the company fails, as other interest is paid such as the tax office and creditors. first.

Website design By BotEap.comWhat are the benefits?

Website design By BotEap.comAs a shareholder, you receive the benefits of the capital gain in the value of the company, which you can realize with the sale of your shares. You also receive the dividends that are generally paid twice a year, as well as access to rights, bonus shares, and share buyback schemes that can be offered.

Website design By BotEap.comOther minor benefits are that you have the right to attend and vote at company general meetings and can sometimes participate in shareholder benefits such as discounts on company products. If you own the shares directly and not through a managed or mutual fund, there are no administration fees.

Website design By BotEap.comSome inconvenience?

Website design By BotEap.comIt’s difficult for the average investor to know when to buy the stock (good value?), When to sell, and when to take advantage of corporate stocks, such as share buybacks, without professional advice. One way to gain the advantage of equity exposure without the need for extensive experience is to invest through a managed or mutual fund.

Website design By BotEap.comIf you want to gain access to the entirety of a stock market or a sector within a stock market with minimal spending, an exchange-traded fund (ETF) is another option.

Website design By BotEap.comKeeping records of direct stocks can be difficult, especially if you reinvest dividends. There are software programs that help you keep records. If you trade or hold your shares through a stockbroker or other management service, you can also receive the benefits of record keeping.

Website design By BotEap.comRemember that stocks are volatile investments and if the business fails, you are the last to receive the remaining capital after expenses have been paid. Diversification within a selection of other stocks and asset classes is the key to managing this risk.