Some Reasons to Motivate You to Invest in the Stock Market
If you are still unsure about whether or not you should invest in the stock market, then here are a few reasons that will help you take a decision in its favor.
1. Better than other investments: If you invest in the stocks you can get back huge returns, even if you have invested a very small amount. Statistically speaking the returns from the stock market are always greater than the returns from other investments. This implies that your money will grow more if invested in this market. This gives you more money to pay off your debts. Thus investing here is an important debt resolution.
2. Easy accessibility: A very important advantage of the stock market is the ease of access. You can do everything online; you can easily take or leave a position whenever you want.
3. Making money from dividend offerings: Some companies offer dividends at regular intervals. This is done so that the company can distribute its profits among the various investors of the company. In this way you can earn from dividend stocks as well.
4. Earnings from bonus shares: Bonus shares may be offered to all investors when the company gathers funds or offers new stocks to expand. These bonus shares will be offered to you at a much lower price than the market rating if you are an investor. Thus when you invest in such a company you get more shares but for lower prices. This increases your chances of earning profit.
5. No lock in period: A lock in period means that you have to sell the stocks within a stipulated period of time. Stock investments do not have any lock in period. As you can sell as and when you wish to, you can maximize your profits.
6. Huge amount of transparency: Some companies in the stock market do take out fake earning statements, however, in most cases the companies give accurate information about how much they spend and how much they earn. Thus a layer of transparency is added into the entire transaction.
These are a few ways in which investing in the stock market can prove to be beneficial for you. Thus, if you are under debt and need to make extra money to pay it off, consider investing in the stock market as an important debt resolution.
Article Contributed by Debt Community Member
The views expressed in this article are those of the author and not of StockMarkets.com