3 Key Benefits of Investing

Venkat wants to invest in shares but isn't aware of all the benefits.

Ashish, a trader explained to him the three benefits of investing in equity shares.

  • #1 Benefit - Dividends and Returns: Venkat's investment in a company earns profits, which increases the value of his investment. This gives him returns.

Additionally, the company may also be eligible to share its profits through dividends.

  • Benefit #2 – Liquidity Stocks can be traded on exchanges and quickly converted into cash.
  • Benefit #3 – Portfolio Diversification: Venkat has the option to spread his investment across different companies and industries, reducing risk of losing.


Foreign Direct Investment vs Foreign Portfolio Investment


All About Domestic Institutional Investors (DII)


Foreign Institutional Investors vs Domestic Institutional Investors


Meaning of Statistical Arbitrage?


What is International Arbitrage?


All About Index Arbitrage


What is Currency Arbitrage?


Meaning of Tax Arbitrage


What is Merger Arbitrage?


What is Wash Sale?


What are Unrealized Gains?


What is Market Liquidity?


What is Contrarian Investing?


Types of Foreign Institutional Investors


All About Dead Cat Bounce Pattern


What is Risk Tolerance?


Everything On Graded Monitoring Measure


All About Cape Ratio


Everything On Mezzanine Capital


All About Non Convertible Debentures