Friends, today we will discuss the advantages of the stock market, what advantages we all receive from the stock market, and why the stock market is so crucial.
Friends, the stock market of any country only provides capital to its industries, and capital is comparable to blood in a business.
The greater the amount and flow of capital, the greater the efficiency of a body or business.
Let us examine, from the perspective of a stock market trader and investor, the advantages of the stock market
Share market advantages
- DIVIDEND INCOME – Friends, there is a share in the profit earned by the DIVIDEND company, which we receive in proportion to the amount of money invested by us in the company. STOCK MARKET INVESTMENT gives us the opportunity to earn a steady profit in the form of DIVIDEND. The same way the company continues to generate profits is the same way it continues to distribute dividends.
- Limited Liability – When investing in the stock market, our liability is limited to the amount invested.
- Ownership in Business (Ownership in Business) – Buying stock signifies purchasing a portion of the company’s ownership; the greater the number of shares purchased, the larger the company’s owner.
- Benefit of Compounding – You can invest as much time as you like in the stock market, and as a result, you enjoy the advantage of compounding.
- Freedom of time – If you know how to invest in the market and make money from it, you have a lot of time for other things, because the market is active 5 days a week, and 6 hours a day, which means you have more time to enjoy life.
- Freedom of space – You can invest in the market from anywhere, including your home, office, or even while sitting by the sea, i.e., you can do your work while on vacation. If you are physically ill but mentally sound, you can work from a hospital bed as long as you have an internet connection and a device capable of running your trader’s software.
- No Retirement Age Limit – You Can Invest In Stocks At Any Age If You Have A Demat Account, Trading Account, And Online Banking Service. It is entirely up to you how much and when you want to work in the stock market and when you do not. There is no limit or requirement that you must always perform this work.
- Understanding of Business – Prior to investing in stocks, you conduct RESEARCH, which enables you to comprehend the business of all companies. As a result, you gain knowledge regarding these large corporations. A great deal of information is obtained about the business, its performance, the reasons why a company or its business advances and the reasons why it fails. You receive information about yourself, which increases your business knowledge and knowledge of how to advance your business, if you are in business, or provides you with a new business opportunity.
- No Money Investment Limit – Investing in the stock market is similar to investing in a business, and investing in the stock market gives you the freedom to start investing with as much money as you have. If you have as little as 1,000, you can begin investing, and if you have as much as 1,000 crores per crore, you can begin investing as well. You may invest as much cash as you desire.
- Making money with money – no product – Stock market investing is a place where you can make money from money without having to buy or sell any kind of product; you simply purchase stocks with your own money and earn money by selling and selling stocks. Do not purchase any additional products of any kind.
- No Profit or Loss Limit – There is no profit or loss limit here; it is entirely up to you how much you want to profit and when, and how you want to limit your losses in the event of a loss. You can also determine your profit and loss based on your risk tolerance.
- LIQUIDITY ON INVESTMENT – It is simple to convert money invested in the stock market into CASH, whereas it may take a considerable amount of time to convert money invested in other businesses.
- Benefit in Tax – If you are a long-term investor, you benefit from long-term capital gains, and you also receive numerous tax advantages on top of the amount invested in the stock market.