Investing in Shares

By Investing in shares in a public company, which has registration in a stock exchange an individual can get a share in the future income and value of the company. The company's capital is divided up into many equal parts, called shares.

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

1. As the value of your company increases, so does the value of your shares.

2. Profits to share to the investors known as dividends. Dividends are income payments. They do not take this money as reinvestment for the company.

3. These dividends are taxed effective.

4. If shares are held for more than 12 months a 50% discount on any capital gains tax payable.

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

Shares are often small parcels that represent different companies. They can be used to generate high returns, or they can decrease the value of the original company. Shares are generally best for investors having a long term saving idea, longer investment period and high returns for long-term investments. The performance that the company has grown is shown in the profits. The future prospects of both the investment holders and company will grow. If there is a capital loss it is by the shareholders. The amount varies depending on the share and company.

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

Share trading agencies assist in buying or selling shares through demat accounts from identifiable companies. The company issues equity and preferential shares at face value. The issue price of these shares is equal to the par how to buy dangote shares value. Every day the exchange quotes the market price and share brokers and mediators will become the causes for the odd fluctuations in the market. When the market price is lower than the face value, a discount sale will occur. When the share's market price exceeds its face value, it is called a premium sale. The dividend given by a company is expressed as a percentage. Shareholders can monitor their investments daily, i.e. from Monday to Friday, through newspapers, television media, and the internet.