Why People Buy Stocks ? Every one of you must have heard someone buying shares. The most obvious reason is income generation. But why stocks are considered best. Simply speaking, buying a stock is an investment in equity shares. Stocks are attracting investors on a large basis. Though the size and volume vary, buying stocks is a popular activity. Certain factors make it very attractive.
The best thing about buying a stock is that it gives a sense of ownership. Buyers of equity get a right to vote. They can make a difference during the elections of the company management. Besides this, there are numerous reasons for buying stocks.
Top Reasons of Buying Shares
Buying stocks in Indian market is a great way of investing in companies. Equity allows investing with a very minimum amount. The major reasons why people buy stocks are as below.
Money matters most and that is the king reason for purchasing stocks. Buying stocks helps quick multiplication of wealth. Traders buy at low price and sell when the price is high. Huge or fair profits are expected from the stocks.
Stocks are flexible investment. Buyers of the stocks can sell them at any time they need to do so. Other instruments like fixed deposits fixed and long term based.
Stable Source of Income
Buyers of equity get the benefit of dividends. They receive part of the profit of the company. A reputed and stable company pays dividends to the shareholders. Sometimes companies also offer shares in place of the dividends.
Balanced Platform to Trade
The Indian share market is a regulated market with a very large number of companies. A regular buyer purchases stocks of various companies. A loss incurred from one stock can be adjusted by the gain in other stocks.
Minimizing your loss with thediversification of investment portfolio is possible. Due to these simple yet lucrative benefits, people prefer to buy stocks. Shares offer a quick wealth generation compared to other investment vehicles.
Buying stocks is an active participation for the purchaser. He engages in buying and selling for immediate profits. This attracts investors rather than dormant investments. With shares, money grows in value over a short period of time.
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