At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
In today’s blog post we dive into why people own shares and some interesting facts about how you make money from them.
Why would you want to own shares or stocks?
The reason is simple.
You are looking to make money.
Disclaimer, you will not always make money. That you must be aware of, but the reason people do is to make money.
How do you make money from shares?
There are two simple ways to explain how you make money from owning shares.
#1 The first way is a capital gain.
What I mean by that is that if you buy a share for a dollar, and then over time, the value of that share increases, and it becomes worth $2. And you sell it, you make a 100% capital gain, you can see your $1 investments turned into $2 and you sell out.
That is a common way to make money from shares.
#2 The next way is to make dividends.
How that works is that you purchase a share and typically with dividend-paying share. They generally stay around the same price, but not always. However, when that company makes money, they share some of their profit with the owners, and that is the shareholders, that is you!
Disclaimer again, they don’t always pay dividends.
So you can make money from owning shares from companies that are gonna grow. They may not pay any dividends, but you buy them here and you sell them here, or you can make money by owning shares and when they continue to make their profits they share their profits with you.
Want to get involved in shares?
If you are interested in getting involved, we help a lot of people.
We set up a small account and you don’t have to be wealthy, you just put in the same amount of money every week. It could be $10, it could be $20 and you learn as you grow your wealth.
That’s a wrap
So what do you think? Did you learn something new today? We love educating and helping people learn all about insurance and finances.
If you need any financial help or advice please get in touch with us at Super-Advice.