Benefits of Stock Exchange - Stock Exchange in India, Interdisciplinary issues in Indian Commerce Video Lecture | Interdisciplinary Issues in Indian Commerce - B Com

hi welcome I'm Raj Venugopal today we
are going to discuss about the top 10
benefits of stock market investment the
first benefit is incremental investment
strategy there is no minimum amount
required to enter the stock market
anybody with whatever money they got can
start investing right away in the stock
market you can pump in new money
Adri in was the dividend money in order
to grow your investment the amount of
money you make is directly proportional
to the time invested in the stock market
longer you stay with the market the
higher your growth potential is the
second benefit is money making more
money this is a classic case of money
making more money the more money you put
to work the more money gets earned there
are a lot of blue chip stocks that has a
great growth potential and shares its
profit to the investors every quarter in
the form of dividends stock value goes
up during good times and goes down
during bad times the third benefit is no
limit to rewards that is there is no
limit on how high the stock can grow as
long as the fundamentals are correct the
stock will keep rising up in value this
is applicable to both growth stock and
dividend stock when it comes to growth
stock the value appreciates more rapidly
than the dividend stock but in different
stock has an advantage to bring in cash
flow from your investment the cash flow
when effectively reinvested can grow
even bigger investment in the long run
the fourth benefit is liquidity the
biggest advantage of holding the asset
in the form of stock is that it can be
liquidated pretty easily often takes
only couple of mouse clicks to convert
huge investment into cash and vice versa
the first benefit is the tax benefits
there are no tax liability just owning
stock investment let me clarify you need
to pay taxes on dividends and other cash
flow you receive from your investment
but there are no taxes
just owning the stock there are no
maintenance costs no property tax to be
paid etc cash you receive in the form of
dividends can have benefits as well
qualified dividends are subjected to
lower taxes than the non qualified tax
dividends so it should be aware of this
the SEC's benefit is it improves your
emotional intelligence in most cases it
is like swimming against the waves it is
tough mentally and physically when the
easiest thing to do is go with the flow
and follow the crowd if your seed is
investor and you would like to be in the
market in the long run you know that you
should not follow the crowd it takes a
great deal of emotional strength to buy
stock when everyone is selling and sell
the stock when everyone is buying the
emotional outcomes are not logical so
every ten years the market crashes for
no logical reason this is the logical
time for the new investor to getting
into the market the stock market is
neither your friend nor your enemy it is
a reflection of the economic condition
of the country it is a system created
and maintained by humans so it has a
strength and weakness of a human being
you are better off using your emotion to
think and instead of thinking with your
emotion the seventh benefit is cash flow
dividend paying stocks provides a
healthy cash flow for the investor
dividend money is a portion of a
company's yearning approved by board of
director to be distributed to the
shareholders dividends are usually
issued as cash payments either quarterly
or on a monthly basis adding more stocks
to your portfolio increases the cash
flow from your stock investment if
planned and executed carefully this can
be a way to financial independence for a
long-term investors they benefit is the
power of compound interest power of
compounding directly proportional to the
duration of the investment the key to
the power of compounding is the snowball
effect that happens when dividends and
the capital gains
laid over a period of time to make your
money grow faster and faster as the
years go on the ninth benefit is it can
beat the inflation the best way to beat
the English inflation is to invest in
stock market historically stock have
averaged an annual return of over 10%
which is much higher than the average in
inflation rate of three point two
percent the last but not the least
powered by Main Street Wall Street is
not the enemy of Main Street in fact
Wall Street depends on this prosperity
of the Main Street Wall Street focus is
on generating money using money to make
more money and globalized business and
employment opportunity in order to save
money
whereas Main Street creates livelihood
provides employment opportunity needs in
the society and advances the human
interest
it is like the heart and soul of a
capitalism both are important
without the Main Street Wall Street is
like your shiny mobile phone without the
software so these are the ten benefits
of investing in stock market now
whatever you do enjoy and have fun
write your feedback and question in your
comment section and I'll get back to you
at the earliest possible time
wish you happy investing days ahead
hasta la vista ROG Venugopal
bye