Sunday, June 17, 2012

The benefit of owning a stock

No one insane people said that the stock is better investment today. As the economic condition bad, the stock investment also becomes worse. Some stock does not pay the dividend again. Its price is also decreasing due to low demand of this investment.
However, some optimistic investor believes that the economic will recover. They think it is time to buy the cheap stock. They can buy the expensive stock cheap. Here is the benefit of owning company stock.

1. You own the company
By owning stock, you and other shareholder are the owner of  the company. If you have majority stock, you can lead the company. The majority shareholder has right to decide the company where they go.

2. You can sell it anytime
Stock is very liquid and you can sell it anytime you like. You have better to sell when the stock reach the peak.  Learn the statistical or technical of the stock. They have peak or valley. There is some sign that the stock will increase or decrease. A clever investor should buy the stock cheaply and sell it expensive.

3. Get the dividend
Some good company that can generate revenue will share the dividend to the shareholders. They want share Dividend can also increase the stock price. The company that always pay dividend to the investor is Blue Chip Company. It is not difficult to recognize the blue chip company. The stock market list some company that is included as Blue Chip Company.

4. Generate capital gain
The stock price is volatile. Sometimes it increases to the top but sometime it go down to peak. Before the dotcom bubble, the dotcom stock could rise over many times. Some investor get benefit by selling it.
Today, the stock price tends to decrease, but someday the stock will increase. Surely, you have to buy the right stock not junk stock. The right stock has some sign that you can analyze at the financial statement.

5. It does need saving and maintenance
Owning stock is not bored the holder or investor. The investor can save the stock at their house or the can save to the broker or safe deposit box that cost little money. You can save the stock at wardrobe or other safe place.

Certainly, the company stock is risky investment too. The investor can loss all entire money in a moment.

Read Also :
What is investment that right for investment?
Stock Versus Mutual Fund
Stay Positive in Tight Economic

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