An individual ownership in a company or a corporation is termed as stocks. Sine an individual does participate in the growth of the company through stocks, one is therefore entitled to the earnings and the asset that a company or corporation receives. An individual can therefore benefit from the stocks that they buy from a corporation.
Firstly, it is important to note that as the economy gradually grows then this means that the earnings ones get from the stocks increases. This is given by the fact that the earnings for the company increases given that the economy’s growth has significantly risen and therefore a remarkable cash inflow. Buying stocks from company is not a tedious process given the fact there are a number of stock brokers who facilitate the buying and selling of stocks and furthermore one can buy from the company’s website.
It is a fact that from the other classes of assets, stocks are known to have the highest returns. An individual is therefore guaranteed of having hefty earnings by buying the stocks of a company or a corporation. Stocks have a nature of diversity since one has the ability to buy stocks from different countries and consequently be able to buy from the different sectors in the country. The diversity of the stocks enables an individual to have a wide range of growing opportunities since they are not confined to just buying stocks from the same country or worse yet from just one industry. A fact is that each individual have the urge to use money or either there might be an urgent need of money. Given by the fact that stocks can be easily liquidated and can be turned to cash really quick then the urgency of money can be easily solved.
In the course of being a stock holder, one might decide to sell the stocks they earn and this concurrently enables them to earn more money. This is given by the fact that a stock holder has the right to sell their stock at a higher price than they originally bought at. Consequently, one is able to land a job opportunity in the company that they have shares with. It is notable that directors of most companies are appointed majorly based on the number of stocks that they hold in a company. An individual therefore has the opportunity to apply for a director position if they have the amount of stocks that the company has stated one can be able to get the job.
Finally, it is a fact that stocks have limited liabilities. For its limited liability nature, an individual is saved from suffering a loss given that the company suffers a close down.