Tuesday, 3 November 2015

Brilliant ways on how to make money from investing in a company.

The profits you can make from investing in a company can be from two sources:

1. GET CASH BACK IN YOUR POCKET:
- Usually twice a year, most quoted companies pay a proportion of their earnings (profits after tax, called "attributable earnings") to shareholders in the form of a dividend. This is cash back in your pocket - without the need to sell your shares!

2. CAPITAL GROWTH BY SELLING YOUR SHARES:
-  Companies exist to profit. Their profit potential is an indication of what their worth, and when they grow profits, their share prices grow to reflect the fact that they are now worth more. When a share price goes up you can sell and capture the price gains its made as profits.

*So shareholders can gain in two ways: Through dividend income and through capital growth from an increase in the share price.*

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