A share is nothing but a part of the ownership of the company issued to the general public to raise capital.
So when you buy shares of a company, you become the owner of that company proportional to the value of shares.There are two most important reasons to buy shares online:Capital Appreciation:Capital Appreciation is an increase in the value of a stock over a period of time.
Technically speaking, capital appreciation is the difference between the purchase price and the selling price of the stock.DIVIDEND INCOME: A dividend is paid by the company to its shareholders every year.
It is a part of the company’s cash reserves or profits.
The companies don’t have an obligation to pay dividends to their shareholders.
Myth: More than 90% of people think dividends are paid only when the company makes a profit.