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Why You Should Buy Stocks? – Stock Market Guide

buy-stocks
  • Owning stock means owning a piece of a company.
  • Invested funds are working for you 24/7.
  • Invested money can grow much faster than cash in a savings account.

Ever wanted to own part of a great business? That’s exactly what happens when you buy stocks. You’re buying a part of that company. As a part-owner, you’re entitled to a share of the profits and assets of that business.

You profit from owning stock in one of two ways:

  1. The company can decide to return money to its shareholders via dividends. This is cash that is paid to you on a regular basis for being a shareholder.
  2. The business grows and the price per share increases. Once you decide to sell your shares, you pocket the returns.
Related Post: Difference Between Investment And Speculation – Who Wins The Battle

While money kept in a savings account gets eaten away by inflation, invested money is working for you 24/7. Unlike a bank account, your original outlay can multiply many times over if you invest in the right companies.

On average, the stock market has returned around 10% annually since 1974 (without factoring in inflation). That easily beats the 0.5% you’ll get by keeping your money in a savings account.

Be ready to buy stocks!

Related Post: Why Do People Buy Shares?

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