Why Invest?

  

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Capital Growth/Appreciation
One reason that motivates an investor to invest in stocks is capital appreciation. They want their money to grow in value over time. An investor is looking to buy the stock at a low price and sell it at a higher price at some point in the future.

Example: Mr. Investor purchased 100 shares of ABC Corporation at Php100.00 per share on March 15, 2016. On April 30, 2017, Mr. Investor sells his 100 shares of ABC Corporation for Php200 per share, realizing a profit of P100.00 per share, or Php10,000 on the100 shares. 

Dividend Income
Most corporations distribute a portion of their earnings to their investors in the form of dividends. This distribution of earnings generate income for the investor.  Investors in stocks generally receive dividends in a quarterly or semi-annual basis.

Shareholder has the right to vote
As a stockholder or shareholder, you have some basic rights. You can vote for or against the candidates who have been nominated to the company's board of directors. They are the people who set company's policies and procedures as well as choose the chief executive who runs the business. You can also vote for or against proposals the directors or other shareholders make to influence what happens at the company and how it is managed.

 

 
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