What are the benefits of being a shareholder?

Fsp Invest, 05 Dec. 2013

Tags: benefits of being a shareholder, benefits of owning shares, shares, how to make money from shares, investing, dividends,



You might be eager to buy your first share, but have you thought about why? The first thing that might come to mind is that there’s a chance you’ll make large profits. While this may be the case, there are actually several benefits of buying shares in a listed company. Read on to discover the benefits of being a shareholder…



The main benefit is that you can make money, the research team at Red Hot Penny Shares explain…

And sometimes you can buy into a share that shows huge rates of growth, multiplying your money upwards.

You can also determine your own risk strategy to suit your profile. This will allow you to cover your losses as well as determine how to manage your profits.

One major benefit of being a shareholder is sharing in a company’s dividends. Not all companies pay dividends, especially if the company is growing and reinvesting all its money into its business.

But some investors look to invest in good dividend paying companies to benefit from the dividend payments the company makes. A dividend is a share in the capital growth of the company.

The 2 ways to make money out of shares

So there are two ways to make money out of shares: Selling the shares themselves at a profit or receiving dividend pay-outs from company profits.

Another key advantage is you’ll also have a voice and a vote in the running of the company. You’ll be able to attend AGMs and make your feelings known.

Your status will shift from consumer and observer to active role player. You’ll be able to take a direct, personal interest in the company, its products and services, and the industry in which it operates. You’ll share its vision and its goals, along with any dividends that might come your way.

No matter how small your shareholding, you’ll be more than an investor. Of course, if you don’t want to become proactive in the company affairs that’s also fine.

So there you have it, the benefits of being a shareholder.


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