Finance
What are the benefits to invest in the shares?
Investing has a lot of benefits. It helps in making money. Completion of the future objectives of a person is the main aim of investing as there should be increase in the wealth. Investing in shares is a good option as it has many benefits.
Following are some of the benefits of investing in the shares:
- Provides liquidity: Liquidity means to convert the investment into cash whenever you require. Shares are generally liquid as it is its basic important function due to which it is easy to sell them on the platform of stock exchange. Buying and selling of the securities is basic and it creates a contingent market. Also, the investors can sell shares and convert them into cash whenever they require. The transfer of ownership is very easy. Therefore, liquidity is provided to the securities.
- Capital gain: The value of a company grow with time due to which the price of the shares increases. When you sell a share at price more than what you purchased is known as capital gain. Purchasing and selling of shares which means investing and disinvesting the savings help in formation of the capital due to which there is also an increase in the economy. One can check the tata steel share rate and can go for them.
- Dividends: After purchasing the shares of the company, one becomes the shareholder.The money paid regularly to them at the end of each financial year is the dividend. So, it becomes the benefit of purchasing the shares as more the amount of shares one have, more will be the amount of the dividend which they will receive. Also, you get voting benefits after you become the shareholder.
- Regulatory framework: The dealing of shares is on the stock exchange and stock exchange market is regulated by some legal framework only like in India it is done by Securities and Exchange Board of India (SEBI). So, the rights and interests of the investors are protected as it performs various functions like regulatory, developmental and protective functions. The risk gets reduced because of the regulatory framework. There can be no frauds and illegal activities. The transactions will be fair and safe as there is full transparency in the working.
- High returns: Investment in shares can provide us with the high returns as compared to the other investments in a very short period of time. There is no need to wait for years, one can get high returns within few days and weeks only. In a controlled and the restricted manner, it provides with the healthy speculation. One can also diversify the investment by investing in different kinds of shares. The iex share price can be checked and some other companies shares also and then selecting the best investment.
To get more information, one can visit and study the 5 Paisa market guide and can invest through 5 Paisa to get the above mentioned benefits. It is very easy to login as there is only one touch login through fingerprint. There is no need of any password, dob, etc. Therefore, one should must invest in the shares.