50 Connect | 7 reasons why you should invest your money in share market
7 reasons why you should invest your money in share market
Posted on: 12 October 2018 by Jeniffer Page
This blog is about the reasons why you should invest in share market.
In a world where the stock market plays a pivotal role, there are certain misconceptions which make people get an unfair idea about the stock market being a gambling platform. But in all true blue ways, the aforementioned statement is nowhere correct. In fact, despite the slowing down of the gross domestic product, the market is still an all-time high. Eventually, it has a direct impact on the economy of the country too, which is why government and central banks always keep a close eye on all the happenings of this booming market. It is an essential platform for both the industry as well as the investor’s point of view.
7 Reasons to Invest in the Stock Market
Generally speaking, it is often risky to buy stocks than going for the purchase of a bond. While some stocks might get really risky to go for the purchase, here’s why investing in the Share market might be beneficial. Keep reading on to know the benefits of investing in the stock market.
1. Investing makes your money work for you
While money might have a direct impact on the causes of certain problems, most people fail to understand this fact. The lack of money is the cause of most of the problems, and hence investing is the ultimate solution. Spending your money in renowned companies will only make your money expand with the company prospers. Meanwhile, while your money is expanding, you get your time to spend on whatsoever activities according to your preference. This leads your money to work for you in an effective manner.
2. Investing Money in the Stock Market is easier these days
You can invest your money in the stock market, and you don’t have to get hold of any rocket science for that. Now that trading with online brokerage accounts has become like a piece of cake with the rise in the financial apps as well as websites, choosing stocks have become a lot easier. You don’t require visiting any typical financial magazines or newspaper, all thanks to the newer technology. This leads you to simply follow the website of the company on the Internet.
3. You don’t require digging deep
In this fast-paced world, there are a couple of examples of common shares which shed lights on the renowned companies. The well-known companies are popular among the common folks. And if you plan to invest in the stock market, you get a lot of opportunities around you. Thus, finding such developing firms in today’s contemporary era is not a hectic affair. Even popular companies can make your investing get mammoth returns. All you require doing is to find a company and shed dimes on it to get bigger profits in the near future. Also, you must be willing to look around and notice the effective companies.
4. Investing in the Stock Market is equal to creating a secondary source of income
You might have been taught in school to get a secured job, but what have not been taught are the consequences faced when either a particular company shuts down or you get fired from the firm. In such a scenario where you have no other options left, investing in a stock market comes into the frame. Spending money in the stock market is thus the best backup plan to have once you join a company or firm and work for them as an employee. In many countries, stock markets help in offering the additional source of income. In fact, it can also be a secondary source of income. The value of appreciation and dividends helps in expanding the additional income of individuals.
5. Stock investing ensures to take advantage of the compound interest
You can take advantage of the power of compound interest. The Share market investing gives you the allowance to get the benefits of the compound interest, thereby helps in expanding your wealth, exponentially. While the bank savings accounts are licensed to offer a linear simple interest to the account owners, investing in the stock market give you a mammoth amount of compounded returns. Additionally, the compounded returns might make you all the richer. Thus, the power of the compound interest is one of the pivotal reasons as to why choosing stock investing might be of huge benefits.
6. Investing in a stock market won’t cost you an arm or a leg
The biggest misconception that everyone has about investing in the stock market is that it needs a lot of money. But, in general, spending a little amount of money can make your investment worthwhile. In fact, spending in a share market is as similar as buying a burger, especially for the stocks which come at a minimum price tag. The truth about investing in a stock market is spending a small amount of money and eventually receiving a good return.
7. Investing in a share market involves some tax benefits
A couple of tax benefits are included when you invest in the share market. For the first-time stock investors, you get a huge amount of tax benefits. Not only does it fetch higher profits in the distant future, but investing in the stock market also offers multiple tax exemptions as well as deductions.
Drawing the Closure
While raising funds for expansions of a new business venture, a company always has to either apply for a loan from an organization or it must issue shares through the share market. Talking about the share market, it is also known as the stock market which happens to be the primary source for the business. For issuing the shares for investors to spend in the stock market, a company always has to list out the stock exchange. Eventually, upon listing out the exchange, the company can issue the shares through the primary stock market exchange and receive the stock exchange ahead of fulfilling the criteria in order to issue the shares and eventually go public. Hence, the stock market is the primary platform where companies are allowed to issue the shares and eventually raise the fund.