What benefits will you gain by buying shares or ownership of a company?

The first, if the company had a profit, then usually you get a share of profits called dividends. Take for example, if the per share dividend you receive USD 100 per share, and then by 3000 the stock you have, the total dividends you get is USD 300,000. Of course, the standard amount of dividends varies from one company to another company. But the principle is more or less the same. The more shares you have, the greater the dividend you can if that company profits.

The second advantage could be the value of your stock rises. Back we let you buy shares at USD 1,000. Well, if then more and more who want to buy stock, then stock prices may have increased so tell USD 1,400 per share. Thus, if you sell it, this means you get a profit of 40 percent. Profit is called capital gains. Where do you sell stock? Not to the companies that issue stock in question, but to others who do want to have these shares.

Of course, investing in stocks is risky. Namely, the decline in stock prices that you have. For example, from USD 1000 fell to USD 600 per share. When you sell, then you will lose USD 400 per share. Such losses usually called capital loss. Where do you sell? Also to others who do want to have these shares.

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