Investing in Shares

By: Elton John

The people who buy these are the shareholders of thecompany.? Shares represent ownership in acompany. It is also called as equity and preference shares. Investing inshares, you become a part owner of the company and have the share in futurevalue and profits.

????????????????? 1.? Your share value increases as value of thecompany increases.

2.????? Profits to share to the investors known asdividends. The income payments are the dividends. They do not take this moneyas reinvestment for the company.

3.????? These dividends are taxed effective.

4.????? If shares are held for more than 12 months a50% discount on any capital gains tax payable.

5.????? Capital gains will be yours when you sell ata price higher than the price you actually purchased the shares at.

Sincethe shares are small parcels of different companies they can generate highreturns and increase the value or decrease the original value of the company.Shares are generally best for investors having a long term saving idea, longerinvestment period and high returns for long-term investments. The performancethat the company has grown is shown in the profits. Future prospects of theinvestment holders and the company will increase more. If there is a capitalloss it is by the shareholders. This varies from share to share depending uponthe company.

Theprices of the shares vary from day to day and it may go up or down on the sameday. Due to the rise and fall of the economic confidence or changes in aparticular industry the increase or decrease in value occurs in the sharemarket. When you make the share investments as long term investment you aresure to secure your future. If the requirement of a high amount of cash occursall you have to do is sell your shares and get all the liquidity that you need.

Sharetrading agencies help in selling or purchasing the shares from the identifiablecompanies through demat accounts. Preferential and equity shares are issued bythe company’s at par and issue price is the par value or the face value of the shareand the number of shares multiplied by the face value is the stock held by theshareholder. Every day the exchange quotes the market price and share brokersand mediators will become the causes for the odd fluctuations in the market.Discount sale occurs when market price is less than the face value. The shareis said to be sold at premium when the market price is higher than the facevalue. Dividend given by the company is expressed in % .The shareholders cancheck their investments the daily i.e., Monday to Friday through newspapers, TVmedia and Internet.?

Investment
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Investment
 



Share this article :
Click to see more related articles