An individual can invest in shares of a company that is registered on a stock exchange and get a piece of its future earnings and value. fxcm.my/cara-beli-saham-cfd/ The capital of the company's business is divided into a large number of equal parts called shares.
Shareholders are those who purchase these shares. The shares represent ownership of a company. Also known as equity shares and preference stocks. Investing in shares, you become a part owner of the company and have the share in future value and profits.
1. Your share value increases as value of the company increases.
2. Dividends are the profits that investors receive. The income payments are the dividends. They do not take this money as reinvestment for the company.
3. These dividends are taxed effective.
4. If shares are held for more than 12 months a 50% discount on any capital gains tax payable.
5. You will receive capital gains if you sell your shares for a higher price than you paid when you bought them.
Shares are small parcels that represent different companies. They can increase or decrease the value of the company. Shares are generally best for investors having a long term saving idea, longer investment period and high returns for long-term investments. The performance that the company has grown is shown in the profits. The future prospects of both the company and investment holders will grow. If there is a capital loss it is by the shareholders. The amount varies depending on the share and company.
Prices of shares can fluctuate from one day to the next and even on the same date. The share market can increase or decrease its value due to changes in an industry or the fluctuation of economic confidence. When you make the share investments as long term investment you are sure to secure your future. If the requirement of a high amount of cash occurs all you have to do is sell your shares and get all the liquidity that you need.
Share trading agencies assist in buying or selling shares through demat accounts from identifiable companies. Preferential and equity shares are issued by the company's at par and issue price is the par value or the face value of the share and the number of shares multiplied by the face value is the stock held by the shareholder. The exchange will quote the market price every day and the share brokers and intermediaries are the ones who cause the strange fluctuations on the market. When the market price is lower than the face value, a discount sale will occur. The share is said to be sold at premium when the market price is higher than the face value. Dividend given by the company is expressed in % .The shareholders can check their investments the daily i.e., Monday to Friday through newspapers, TV media and Internet.