A stock is simply a portion of ownership of a company. It represents the shares of the company. When you acquire stocks in a certain company, you are seen as a shareholder of the company. These shares may be ordinary shares or preference shares. The difference between the two is that one has the capacity to influence the decision making of a company, while the other doesn't. Depending on the financial status of a corporation, one may be inclined to invest in acquiring its shares. This can be done through the stock market by use of stockbrokers. They act as intermediaries between the interested parties. Just like any other investment, stocks also have their benefits. Some of the advantages of investing in stocks include the following:
The growth of your money is one of the main reasons why an investor would like to put his money in stocks. When you put your cash in a stable and growing corporation, there are high chances of your money growing. Individuals buy shares when they are at low prices and sell once they increase in value. This means that the amount you spent on buying the share will have increased when you will want to dispose of them. The increase of your investment is also seen through receiving dividends. High performing companies make good profits which enable them to be able to share some of their earnings with their shareholders. Learn more on Small Cap Power.
The trading of shares has advanced since now one can purchase or sell them online. This has made it very easy to trade the shares. You can buy and sell at your own disposal. This means when in dire need of cash, you can easily dispose a portion of your shares and convert them to cash. Dealing with shares gives one room for diversity. You have a number of companies in the stock market to choose from. This gives you an opportunity to choose from a variety of corporations. You are able to make a sober decision on which company to put your money in. See more on penny stocks canada.
Shake holders get to have ownership of corporations and businesses. Shareholders are involved in the operations of a company since they are involved in decision making. This gives you an edge in deciding how much you would like to put in a certain stock investment. Investing in shares has become one of the simplest investments that have good returns. Considering the above benefits of shares, one is able to comfortably invest in a stock with a sound knowledge of what to expect. Visit https://en.wikipedia.org/wiki/Share_(finance) for more information.