Why you should take advantage of companies listing on the stock market

Julie Brownlee, Fsp Invest, 13 Mar. 2015

Tags: stock market, why list on the stock market, shares, shares on the stock market, buying and selling shares, invest in shares,

Have you ever wondered why companies list on the stock market and sell shares in their businesses?

And have you considered what you stand to gain from investing in these companies?

Read on to find out…

Why companies sell shares

There are a number of reasons why companies list on the stock market and sell shares. The main reason is it’s a way for a company to raise cash.

For example, say a company wants to expand its business, it needs to raise extra money to put into this expansion, or the new equipment it needs to buy.

Or the founders of the company want to release some of the wealth they’ve made growing it over the years, so how can they do this?

One way to achieve these goals is to divvy the company up into shares. The company founders will keep some of the shares for themselves and sell the others to willing buyers on the stock market.

If a company decides to do this, it needs to list on the stock market. It will usually do this through an initial public offering.

The sale of these shares goes straight back to the company, but after that, the shares trade on the stock market between buyers and sellers.

Why invest in shares?

By investing in shares, you have the opportunity to share in the fortunes of a business. If you buy shares in a company and it does well, there’s a good chance the value of the company’s shares will rise over the years.

This means the price of the shares will be higher than what they were when you bought them. To bank a profit from a rising share price, you’ll have to sell your shares. Through your stock broker, you should find a willing buyer for your shares on the stock market.

Another advantage of investing in shares is the prospect of dividends. If a company is doing well and making a lot of cash, it may decide to return some of this profit back to its shareholders through dividends.

So there you have it. Why you should take advantage of companies listing on the stock market.

*********** Best seller *************

Read this now, or miss out on THE buying opportunities of the year.

You could make a fortune with these 5 potentially explosive shares hand-picked by our market expert, Francois Joubert.

And we'll give you all the exciting details in this FREE Red Hot Report


Related QA

akossuth asked:
I am a new investor and about to embark on putting together my portfolio. I have an account with Easy Equities. Regarding your portfolio in your [read more]
Published at 13 Feb. 2018 in: Stock Market Share portfolio 1 Answer
oliviees asked:
Dear Gavin / Timon Regarding your cfd tip sent on 24 February 2017 for APN (Apsen), titled ‘Our broker’s top trade of the week’. I am [read more]
Published at 06 Apr. 2017 in: Stock Market Cfd 1 Answer
hjb777 asked:
Good afternoon, Please can you advise your recommendations (buy, sell and hold) on the following shares for 2017 (short [read more]
Published at 21 Feb. 2017 in: Stock Market Shares 2017 Short term 1 Answer
jacquesprinsloo77 asked:
Hi where can i get a detail table list on daily basis / live of all shares on jse + current volume traded + current /delaid price of share.? [read more]
Published at 08 Nov. 2016 in: Stock Market Helpdesk 2 answers
npadiachi70 asked:
my question for today is what advise can you give on trading binary options? is good or bad too rsiky or same as currency trading [read more]
Published at 12 Oct. 2016 in: Stock Market Online marketing 1 Answer

Related articles: