Why it makes sense to invest in Shares? | Indian Stocks to Make You a Millionaire
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Why it makes sense to invest in Shares?

Posted By On 1:49 PM Under
It makes sense to invest in shares as it provides one with an opportunity in the growth story of a country. One can benefit in 2 ways by owning the shares and these are as illustrated below:
The first way is through the growth of the company. For example, suppose that in a year, the company say Reliance achieves an income of Rs 5000 crores. and has say a profit of Rs 300 crores post its expenses. Then they reinvests the money in the business, perhaps by investing in better technology, which reduces costs and thus achieve a higher profit the following year. Where is able to continue improving its earnings, the demand for its shares will increase and hence its market price of share. Such type of benefits is of long term types and thus it makes sense to invest in these companies with long term prospective.
Second method is that where companies share the profit with their investors and same is given in form of dividend and thus one gets continous income by virtue of dividend income.
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