BENEFITS OF INVESTING IN SHARES

Given below are several benefits of investing your hard earned money in shares,which we believe wil be beneficial for our visitors,


Capital Gains

Ø This is when a share’s selling price exceeds its initial purchase price. If the selling price falls beyond the purchase price, you would make a capital loss. Capital gains are free of tax.


Ø Invest in the market with a long term view to mitigate any Capital losses.

Dividends

Ø A company may decide to payout a portion of its earnings to shareholders.

Ø High dividend paying companies in the market are CTC, NEST,LLUB, COMB (X) HNB(X) etc.

Rights

Ø The company may extend this privilege to existing share holders to buy shares at specified & usually discounted price. This is normally in proportion to the number of shares already owned.


Liquidity

Ø Shares quoted on a stock market are generally liquid. There for, they can be sold easily & you can get your money back in a few days.

Ø Invest in companies which have more liquidity.


Higher Returns

Ø In the longer term, shares have ensured a higher return to investors.

Hedge against inflation

Ø Shares are a good investment in an inflationary environment, since share prices increase to protect investors from the effects of the inflation.

Collateral

Ø You may also use your shares as collateral against loan facilities to banks.



source - www.cse.lk