Investment, shares, DSPs, and DRIPs. There are tons of terms that are used in the investment market. Many people are doubtful about investing their hard-earned money into whimsical shares. But investors who want to multiply their wealth want to take a chance. It is all about taking smart calculated risks and thinking long-term before buying the best shares (Bästa aktierna).
Shares are part of a company. When the capital of a company is divided, it is called shares. Each share is a piece of the company. When an organization needs to raise fund they sell its shares. Companies do not share all the shares. They only make a portion available which is called Initial Public Offering.
It means that a company is making a portion available for traders or investors to buy. By doing this companies get the funds for various purposes. One of the best reasons to buy shares is to create wealth. When you buy a piece of share in a promising company you get returns in long term.
The shares will increase in value over time and then one can sell them. There is a golden rule of share investment, buy low, and sell high. Every investor follows this rule. Another benefit of buying shares is one gets the opportunity of owning the company at some point in time.
If you keep investing in the company and buy 51% of the shares then, you will own the company. It won’t happen overnight, but it will take some time to reach that goal.
Buying Shares also has a benefit that most people neglect. It gives you easily accessible money. In fixed deposits, you can’t access the money until the maturity period is over. But in this case, you can sell the shares anytime and get the money back and more.
