Your Shares May Give You Returns More Than Your Other Investments

Pick up some financial research studies and you will come to know that shares (or equities) are one of the best long term investments in the financial market place. They tend to outperform government bonds, corporate bonds, property and many other types of asset. Share prices can go down as well as up so buying shares is not without risk, but over the long term, they can generate good returns. If you want to double your money in a year, for example, buying shares might not be the best way to do it. But if you want to invest for ten years or so, shares may be a rewarding investment.Shares are designed to provide investors with two types of return, annual income and long term capital growth.Most shares offer income in the form of dividends, which are typically paid twice a year. Dividends can be seen as a reward for shareholders. They are paid when a company is profitable and has cash in the bank after it has satisfied all its obligations.In most cases, the more profitable a company is, the higher the dividend payments. If a company is making substantial amounts of money and making significant dividend payments, it is usually considered a good investment so the share price rises. Investors may buy shares specifically for income. Many companies generate substantial amounts of cash every year. They may use some of that money for general corporate purposes, such as paying rent and wage bills, and they may use some of the money to invest in equipment, research and development. But a proportion of that money may be paid to investors as a dividend. As dividends are usually paid out twice a year, they can provide investors with a regular income.Companies that pay generous dividends are known as income stocks.Some companies have heavy investment programmes so they plough their profits back into the business. These companies are often at an early stage of their development and they are keen to expand and grow. They are known as growth businesses and, if their plans succeed, their share price will increase substantially. Long term capital growth comes about when a share price increases over a period of time. Share ownership has developed in many ways over the past years. Technological advances have made share trading faster, cheaper and simpler. There has also been a shift in the number of people owning shares and the way in which they hold them.

So, if you are convinced with the returns of shareschoose amongst some good stock brokers in India and initiate yourtrading process.

I am author of this article. I write this article on behalf of Bezel group. It provides you Best Broker, Online Stock Broker and Discount Brokers.