Benefits of Investment in Shares (2024)

There are many benefits to investing. Let’s find out how this common form of investment can be an effective way to make money. Here are some of the benefits of investing in shares.

1. Capital Growth

   Selling a share for more than you paid for it is known as Capital Gain. This occurs when an individual experiences significant rise in share prices and is one of the long term objectives of investing in shares.

2. Dividends

   Dividend is a cash reward given out to shareholders as part of the profit made by the company at the end of each financial year. The larger the units of the shareholdings one possesses, the more money one receives.

3. Liquidity

   By nature, shares that are listed are a very liquid product and can be bought and sold quickly over an exchange platform. No hassle of involving a broker or transferee and at a relatively low cost as compared to other financial products. Trading on an exchange also allows one to sell part of the share parcels other than redeeming the whole lot.

4. Shareholder Benefits

   Some listed shareholder companies from different market sectors including entertainment, retail, hospitality and financial services offer lavish discounts to shareholders when they buy goods or services from the companies or their affiliates. However in most scenarios, lots of shares need to be owned to qualify for such benefits.