Advantages of Buying Shares or Stocks

Buying stocks (or shares) is a very popular way to make money and increase your wealth in the long term. You will be able to make a lot of money in the stock market if you can find the best growth stocks before they begin their big price moves.

Following are the main advantages of buying shares:

1) When the price of shares increases, investors will receive capital gains from the sale of stocks.

2) If you invest in dividend-paying stocks, you will be entitled to regular dividends from the company. Stocks that pay dividends are very appealing to investors, and it indicates that the companies are making enough money to be able to pay back some of it to their shareholders.

3) Stock ownership provides owners with limited liability.

4) Stocks are liquid assets and you can buy and sell them on any stock exchange.

5) According to empirical data, the stock market has outperformed nearly all other investments over time.

* Next: Advantages and Disadvantages of Dividends