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Tuesday, October 30, 2007

Rewards from stock investing


In my previous piece of writing I have given the concept of stock investing. On this page I would like to tell you about the reward you will get by making a stock investing.

From long term perspective the rewards from stock investing are pretty good if you are only in just right stock at right time and that you can achieve with the help of fundamental and technical knowledge.

Assets history has proved that there is no other asset class where investors had made pretty descent earnings other than stock market in long term, but for that the only thing is that you just need to be in right stock. I would once again like to emphasize on just right stock. There are tons of stocks traded on stock market but not all stocks can give you descent returns on long term basis so your choice for stock investing on long term basis should just needs to be perfect.

Once you are in perfect stock your long team earning will grow substantially, the more than you have expected. The rewards you will get in long teams are
• Dividend: Dividend is a distribution of a portion of a company's earnings allotted to the shareholders. The board of direction decides the amount of dividend to be given to shareholder i.e. dividends per share. If the company is making a consistent profit chance of getting dividend once in two years, annually or biannually is high. The dividend can be in cash, bonus shares/stocks, or property.
• Substantial price increase in your stock holding
• Allotment of subsidy shares if any merger or de-merger of another section from the one main company happens.

The person who had made stock investing in the very early days of stock like Wal-Mart, Microsoft, or in any other Fortune 500 companies had achieved significant growth in their asset. In the future there will be new companies replacing the place of Wal-Mart or Microsoft or any Fortune 500 companies and you have to hunt such companies for your asset growth and to get steady return on long term basis.

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