The reason you are yet to invest in shares is most likely because you have no idea of what it is all about. Fortunately, this article is here to shed light on this type of investment. Suppose you buy Santander bank shares today. What does it mean to you, and what should you expect? Without much ado, let’s take a look at the various benefits of investing in shares. Read on to find out!
1. Capital Growth
As a matter of fact, this is the main reason why people choose to invest in shares in the first place. They buy the shares at a certain price. Over time, there are high chances that the price will go up. If such a thing happens and one sells the shares, it goes without saying that they will make a profit. That’s what the financial world refers to as capital gain. You get back all the money you spent on shares plus more, which calls for a celebration, no doubt.
Shares put too much power to solve short-term financial needs in your hands. That’s because it is quite easy to convert your shares into cash whenever a need arises. Various exchange programs exist, allowing you to buy and sell them within the shortest time possible. As a matter of fact, a transferee or a broker is unnecessary when carrying out such transactions.
The icing on the cake is that you are at liberty to sell a part of your shares instead of the whole amount. That can be impossible when selling other assets such as a house or a car. You have to surrender everything, even if you just need a portion of its price for the financial obligation.
Buying shares make you a shareholder of a certain company. Since you are a part of it, you can enjoy a part of the profit it makes at the end of every financial year. The cash reward you get as a portion of the profit for being a shareholder is called a dividend. Every shareholder receives it, but the amount is directly proportional to the shares they own. Therefore, the more shares you have, you may you get to benefit from them.
4. Shareholder Benefits
For some companies, you get more than just the dividend. This is more common in industries such as financial institutions, hospitality, entertainment and retail sectors. Therefore, the shareholders enjoy discounts upon buying goods and services from the organization or the companies they collaborate with. This benefit is often available to people with a considerable number of shares.
In case you have been torn between investing in shares or not, you now have the information you need to decide. The choice will most likely be to give the investment a shot. After all, there are various benefits that you get to enjoy just owning shares. The more the shares, the more the returns, which is quite encouraging. On the other hand, you will enjoy some of the benefits through selling the shares. At the end of the day, you make a profit, and that’s what matters, no doubt.