WHAT BENEFITS DO INVESTORS GET FROM STOCK OWNERSHIP?

In addition to the opportunity to own part of a company, you receive monetary benefits when you own stock shares. Owning stock allows you the opportunity to earn money on money.

You may be paid regular dividends if you own preferred stock. Common stock may also pay dividends, although they are not fixed. With enough shares of stock, you can earn enough income to supplement your living expenses or to finance large purchases.

When you sell shares after they have risen in value, you have a capital gain.

This is one of the chief attractions of stock—the opportunity to make money from increases in price. Capital gains are the way that many investors look to earn money in the stock market.

Historically, stocks have performed better than most other investments. This is a testament to the growth of the economy in the United States. For a forty year period, the average yearly return of a share of stock was approximately 10 percent. This means that if $10,000 were invested in stocks forty years ago, and dividends and capital gains were reinvested instead of kept, this $10,000 would have been worth about $444,000 after the forty years.

Now let's conclude this tutorial.