2. • In simple Words, a share or stock is a document issued
by a company, which entitles its holder to be one of the
owners of the company.
• A share is issued by a company or can be purchased
from the stock market.
• By owning a share of a company you become the
partial owner of the company.
3. • Over the long run, stocks have historically
averaged about 10% annual returns However,
stocks offer no
guarantee of any returns and can lose value, even
in the long run
• Investments in stocks can generate returns
through dividends.
4. • Investing is a method of purchasing assets in
order to gain profit .
• Investment means the use money in the hope of
making more money.
• The rate of return on investments should be
greater than the rate of inflation, leaving you
with a nice surplus over a period of time.
5. Faith of Investors changes from1985 to2010
90
80
70
60
1985
50
1995
40
2000
30 2005
20 2010
10
0
share REAL BANK
ESTATE
6. • It is a valid question. It is again more
important where to invest? “Shares are a
better option..“
• It is more important in the present time of
economic crisis. Financial problem has
stormed over almost every one.
7. • Shares have been popular with investors historically
because shares have had better returns compared to
other investments, such as bonds and cash in the bank.
• There are many benefits to investing in shares
• The benefits of investing in shares such as
diversification, tax benefits, capital
growth, Dividend, etc.
8. (I) Ease of Diversification
• Diversification is simply not putting all your eggs
in one basket. If you make smaller investment in
various different companies, the likelihood that
one of your investments fails means that it won’t
have a great affect on your total investment
(II) Tax Benefits
• Many of the costs associated with share trading
are tax deductible, as you have to pay tax on your
gains.
9. (III) Capital growth
• Over the longer term, shares can produce significant
capital gains through increases in share prices. Some
companies also issue free or bonus shares to their
shareholders as another way of passing on company
profits or increases in their net worth
(IV) Dividends
• Companies pay much of their profits to their
shareholders in the form of dividends.
• The rate of dividend may vary from time to time
depending upon the profit.
