5 Reasons Why You Should Invest And Gain Stock Investment Benefits!
by a Guest Writer
May 08, 2013
When it comes to stock investment, then yes there are risks involved. However, on the other hand there are quite a few benefits involved with stock market investment as well. Interestingly enough, the potential benefits involved with stock market investments more often than not far outweigh the risks involved. In fact, stocks are known to offer benefits that even fixed investments can’t.
The Benefits Involved With Stock Investments
Take a look at the following benefits involved with stock investments :-
1. The benefit associated with stockholder voting:
You see as a stock holder you’d be having voting rights when it comes to the world of stocks. You could go ahead and vote to elect certain directors or perhaps for the purpose of obtaining loans and other kind of funding. Moreover, it’s through this voting forum that you get to participate in a lot of corporate events. What’s most important is the fact that you’re actually oftentimes more powerful in the inner workings of the company and that too as a stockholder rather than as a consumer.
2. The benefit of the upside potential:
You see, if you happen to purchase a certain position at one price and that price doubles in a few years’ time, then you stand to benefit from that growth. Investment in stocks and keeping them in your portfolio for the long term exposes you to tremendous upside potential.
3. The benefit of the dividends involved:
If you happen to own a stock and the board so happens to issue a dividend to stockholders, then you’re eligible to receive the dividend.
4. The benefit of the step up in basis to beneficiaries:
If it so happens that you pass away due to some unfortunate reason, then you can pass on the stocks to your family. What happens in this situation is that their cost basis receives a certain “step up”. This step up helps in increasing the value of the stock on the date of the death. Moreover, this can also result in a decrease in their liabilities at a later date.
5. The benefit involved with the corporate actions:
It’s a known fact that certain companies buy their shares back and that too at a higher market price from their investors to fund the employee retirement accounts. This is an instance of many such corporate actions that you can take advantage of as a shareholder.
Now that you know the 5 major benefits involved with stock market investment, surely you’d like to go ahead and invest in stocks. All the best!