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Profit Of Investing In Stock Market

In this increasingly modern era, people’s views about investing in the capital market like in are increasingly open. If in the past it seemed that only people with heavy competition were worthy of being investors, now anyone can become an investor. Understanding the ins and outs of shares is mandatory so that no wrong step in investing in the future. Because this type of investment has the potential to provide large benefits for you in the long run but also has a high risk. To play stocks, an investor usually needs a broker or securities company to make a sale and purchase transaction. Choosing a broker can not be done haphazardly, you must first research through the internet or ask directly to the closest relative. Make sure the intended broker is registered and has permission.

After getting the right stock brokerage company, then you can open an account at one or several companies by including identification. Not only that, but you will also be asked to sign an agreement regarding the rights and obligations of both parties. Like other investments, shares also have their advantages and disadvantages. By applying the principle of “selling shares when prices are high and buying shares when prices go down”, you will certainly be able to find out what are the advantages and disadvantages of investments that are currently loved.

There are two benefits that you can get from the stock investment, namely:

1. Capital gain
Capital gains alias the increase in stock prices is the profit obtained from the difference between the selling price and the purchase price of the stock. This could have happened because of the many trading activities on the stock exchange. To make a profit, the price of shares when sold must be higher than when you bought them.

2. Dividends
Dividends are the distribution of profits provided by the company to its shareholders. Usually, the company does not give the entire profit to investors, because some will be used again to fund the company’s business activities in the following year.

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