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.


What is Latency Arbitrage?


What is Locational Arbitrage?


What is Stock Ticker?


What is Speculation?


All about Cross Trade


Meaning of Price Discovery


Meaning of Contrarian Investing?


What are Thinly Traded Securities?


What are Cumulative Preference Shares?


What are Non-Cumulative Preference Shares?


What is Whipsaw?


Current Ratio vs Quick Ratio


What Does It Mean By Third Market?


Meaning of Paper Trading


What is Electronic Communication Network?


What is Spot Trade?


What are Preferred Dividends?


What is Spot Price?


What is Spot Market?


What is Spot Rate?