Stock Investing: Basic Things You Should Know

Stock Investing: Basic Things You Should Know

Hearing the word investment, maybe not everyone will be interested. This is because public understanding of the benefits of investing in in the future is still lacking. In fact, saving is not enough. Investments are needed so that the value of your assets can grow without worrying about being eroded by inflation. In fact, don’t be surprised or surprised if there are still thoughts in the general public that investing is something that only a few people can do, for example, people who have lots of money like conglomerates. In fact, investing can be for everyone. Investments are necessary for those of you who have short, medium, and long-term financial goals. People’s financial goals for investment also vary, for example buying a house, the cost of getting married, the cost of educating children, the cost of family trips to the cost of living for retirement in old age.

Investment options also vary, including capital market investment (examples of products are stocks, mutual funds, bonds), gold investments (examples of products are gold, precious metals, gold jewelry), and property investment (examples of products are land, houses, apartments). However, before investing in stocks, you need to know the basic things about stock investing. The goal is that you can understand the benefits of the risks of investing in stocks so that you can maximize your investment returns.

Then what are the importance and benefits of investing in stocks for you?

Dividends are company profits that will be received and will be distributed to shareholders. Not all of these profits will be distributed, but some parts will be retained to be replanted and used as operational costs for the next company. However, the dividend distribution regulations for each company are not the same, there are even some companies that stipulate that they will not share profits to shareholders in the form of dividends, but in other forms, namely capital gains.

Capital Gain
Capital gain is formed by the existence of stock trading activities on the secondary market. Usually, this type of profit will be assigned to companies that do not stipulate the distribution of profits to shareholders in the form of dividends.

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