For those of you who are new to investing in stocks for the first time may wonder, what are the advantages and disadvantages to be gained when investing in stocks. Every person who invests in stocks, of course, expects reciprocity in the form of profits, both large and small, which is an important profit. Generally, people think when investing in shares like neopets stock market that the results are from the difference in price, even though there are still a few more ways so that the investment profit at the same becomes more leverage. There are three benefits to investors by buying or owning shares.
1. Dividend. Dividends are given after obtaining approval from the shareholders at the GMS. If an investor wants to get a dividend, the investor must hold the shares for a relatively long time, until the ownership of the shares is in the period in which they are recognized as shareholders entitled to receive dividends. Dividends distributed by companies can be in the form of cash dividend if the issuer shares the profits of the company with each shareholder in cash for each share held, share dividend if the issuer shares the company’s profits to each shareholder in the form of company shares according to the proportion of ownership, so the number of shares owned by the investor will increase after the distribution of the stock dividend. The dividend of shares issued is taken from the company’s Retained Earnings post
2. Capital gain. Capital gains are formed by the existence of stock trading activities in the secondary market. For example, an Investor buys ABC shares for 3,000 per share and then sells them at 3,500 per share, which means that the investor gets a capital gain of 500 for each share he sells.
3. Bonus shares. Bonus shares are shares that are distributed free of charge to shareholders, according to the proportion of share ownership. Bonus shares distributed are taken from additional shares.