Stocks Are The Most Profitable Investment
We must remember one rule that the higher the potential profit generated by an investment product, the higher the potential risk faced. Stocks like find out can be said to be a popular investment product now along with the growing public awareness that saving money in savings does not bring more value to the money they have. This awareness also triggers a shift in people’s lifestyles in financial management from the saving society to the investment society. Indeed, stocks are the most profitable investment products compared to other financial products such as deposits, mutual funds and bonds, or commodity products such as gold, land, and even forex.
However, when talking about investment products, whatever they are, then we must remember one rule that the higher the potential profit generated by an investment product, the higher the potential risk faced. If there is an investment product that offers high returns without risk, it is certainly a bulging investment. Stock investment is not a bulging investment. Share transactions are conducted on the stock exchange. Has the right to participate in the GMS and is recognized as the owner of the company. Owning shares means we have a company whereas the owner we have the obligation to participate in determining the leadership of the company and the company’s strategy carried out at the General Meeting of Shareholders (GMS), also entitled to get the benefits generated by the company, this profit is called a dividend.
Dividends are distributed equally to all shareholders by the shares held. The more shares owned, the greater the total dividends obtained. However, dividends will only be distributed when the company whose shares we have gets a profit and at the AGM the majority of shareholders agree on dividend distribution. The more profitable the company is from time to time, the stock price will tend to rise. This price increase is often used by traders to sell the stock at a price higher than the previous purchase price, so that the trade benefits from the difference between the selling and buying price, this is what is called gain.