Wednesday, January 27, 2010
BENEFITS OF INVESTING IN SHARES
Given below are several benefits of investing your hard earned money in shares,which we believe wil be beneficial for our visitors,
Ø This is when a share’s selling price exceeds its initial purchase price. If the selling price falls beyond the purchase price, you would make a capital loss. Capital gains are free of tax.
Ø Invest in the market with a long term view to mitigate any Capital losses.
Ø A company may decide to payout a portion of its earnings to shareholders.
Ø High dividend paying companies in the market are CTC, NEST,LLUB, COMB (X) HNB(X) etc.
Ø The company may extend this privilege to existing share holders to buy shares at specified & usually discounted price. This is normally in proportion to the number of shares already owned.
Ø Shares quoted on a stock market are generally liquid. There for, they can be sold easily & you can get your money back in a few days.
Ø Invest in companies which have more liquidity.
Ø In the longer term, shares have ensured a higher return to investors.
Hedge against inflation
Ø Shares are a good investment in an inflationary environment, since share prices increase to protect investors from the effects of the inflation.
Ø You may also use your shares as collateral against loan facilities to banks.
source - www.cse.lk