If I had an opportunity, I would readily invest in the stock exchange. I am quite aware of the risk factor in the stock market due to the presence and popularity of the industry in the news. However, with proper management of the investment risk, the benefits of investing in the stock market are overly lucrative.
First, the direct investment gains in the stock exchange are great. Investing in the stock exchange is one of the few channels through which to grow one’s money rapidly. The ability to invest in various stocks in various industrial sectors enables a stock market investor to make profits even when some individual stocks are declining in value.
Other than the direct investment gain, investing in the stock market also features income in the form of dividends. Not all companies incorporate dividend plans but those that do, deliver annual dividend payments to their investors. The dividend payments are interesting since they come even in periods where the value of the company stock falls. More so, dividends are a perfect way to increase one’s portfolio in the stock market. Dividends can also act as good sources of retirement income.
Another major reason that makes investing in the stock market so suitable is the aspect of ownership. When someone buys shares of stock in a certain company, it means that the person owns a certain stake in that company. Investing in the stock market makes someone a shareholder in that company. As a shareholder, one can vote on the during board meetings as well as directly make certain decisions for the company. More so, shareholders receive mandatory annual reports that enable them to understand the companies better, enabling in making better investment decisions.
With respect to the above provisions, I would take any possible opportunity available to invest in the stock market. The direct investment gains, the extra income from annual dividends, as well as the aspect of ownership present an investment too promising to ignore.
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