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Various advantages of investing in shares and equity marketsBY: David Prakash Kumar | Category: Business and Finance | Post Date: 2009-09-27
The equity market is one of the best investment avenues that are present. It gives a return of more than 15 percent when calculated for many years. There may be years when the returns may be very bad like the last year. Though the equity markets went down to more than half its level from the peak before the fall, it will bounce back after a few years. In fact this bear market has been very different from all the other bear markets by regaining more than half the value of its fall. The most important advantages of investing in shares and equity markets are: 1. Capital Appreciation: The equity shares value of good companies appreciates in value and can act as a hedge against rising inflation. The prices of the shares of some companies can appreciate much more in value than the shares of other companies. The capital appreciation of the value of shares can be much more than the appreciation in value of commodities like gold and silver. 2. Bonus shares: When a person invests in the shares of a good company, the company may issue bonus shares. This will increase the capital holding of the investor. This can also increase the amount of dividend that a person earns from these bonus shares. 3. Dividend earnings: Many good companies that are listed provide dividend. Some companies provide more than six percent in dividend each year. The capital appreciation and other benefits for the investors along with the dividend can be very rewarding for the investor. 4. Portfolio: Investing in the shares of various companies in the stock market can help to prevent concentration of funds in similar investments. People might have invested in various investment avenues. Equity markets also can be one of them as it will help to diversify the investment of an individual. 5. Long term benefits and return on investment: It has been seen that over a long term outlook, there are no other investment that gives a high return like equity markets. This is an important advantage and benefit of investing in the stock markets. 6. Simple method: With the increased use of computers in the trading of shares, it has become very east to trade in shares. This is one of the simplest methods of investing once a person has started a trading account. The trading account can be used to buy and sell shares through a broker. Now, there are many online share trading methods where the trader or investor can buy and sell shares very easily on the click of a mouse. 7. Easily cashable: Shares can be cashed any time by just selling the shares on the stock market. The person does not have any problems like talking to a financial consultant or any other things. Just selling the shares the person owns in online trade can credit money in the investor's bank account. These are the most important advantages of investing in shares and equity markets. Many people all over the world are starting to understand that the stock market is one of the most lucrative and simple methods of investment. Article Source: http://www.saching.com About Author / Additional Info: I am a physiotherapist and also a freelance writer. I have been writing for many blogs and websites and also take up freelance assignments. Comments are welcome at prakashdavid@rediffmail.com Additional Articles: * Continents do not drift, they raise the land. Author Ponmudiganapathy * Audio enchantment - In the times of TV & Internet how does Radio survive? * CHARACTERSTICS OF AN ORDINARY WOMAN. By Kiran Chandra * What every individual has to learn about fat lip (swollen lip) * The Various causes of Obesity that everyone should know Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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