Three benefits of being an investor and why you need to become one…

Simangele Mzizi, 29 Jan. 2013

Tags: investing, investments in shares, investing in shares, penny share, buying penny shares



Gone are the days of just relying on one primary income. Nowadays as a result of the rising cost of living you need more than one source of income and, there are many ways of generating a secondary source. Being a shareholder is one of them. The financial rewards can be massive if you play your cards right. Not convinced? Here are three benefits of being a shareholder…


“A lot of people shy away from taking the plunge into starting a share portfolio. They find it a little frightening and even intimidating. But don’t let fear stop you from taking the opportunity of a lifetime,” says Francois Joubert, Chief Investment Strategist for Red Hot Penny Shares.
 
Essentially, if you hold shares you own a share of that company. Here are three benefits you have as a shareholder.
Three benefits of being an investor
 
1. You can sell your shares to people who want to buy them for a good profit. Most people think of buying low and selling high when they think of making money.
 
“If you buy a share, and then sell it later at a higher price, you make money from the price difference. This is called the capital gain,” explains investment site redhotpennyshares.co.za.
 
2. You get dividends. This is your share of the company’s profits. “This is your personal share of the company's profits, in proportion to the number of shares you own. It's like receiving interest on money from a savings account,” explains redhotpennyshares.co.za.
 
It’s important to note that receiving dividends depends on whether or not the company makes profits. If the company isn't making a profit, there’ll be nothing to pay out to shareholders as dividends
 
3. You can vote at shareholder meetings. By making your voice heard at the company’s AGM, you can be part of a vote that determines the direction you want the company take and think will best make company profitable. 
 
“By speaking out, and asserting your right to be kept informed of appropriate developments, you’ll be able to take direct, personal interest in the company. You’ll share its vision and its goals along with any dividends that might come your way,” says Joubert.
 
By understanding the benefits of being an investor by owning shares you can start your own investment portfolio which will give you an opportunity to start making financial gains.
 

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Comments
2 comments



Annette Beyers 2016-07-31 16:22:39

I would advise you read this article, it might answer your question: https://realwealth.fspsecure.co.za/?ext_code=102754

Pringane Athenkosi 2015-07-10 14:08:30

what are the advantages and benefits of investing money in a bank e.g for 5year period? what are disadvantages of investing money in a bank?