If i invest in stocks ,what and how i will get benefits or profits?

Question

If i invest in stocks ,what and how i will get benefits or profits?

Answer 1

You must have patience.you should not expect immediate fruits.While investing in stocks, you have to see the company's mangement, its product and overall demand for that product.Always BUY when the stock marker is down and sell when the market is up.buy 10 shares and wait till the price doubles then sell 5 shares taking into A/c the brokerageand withdraw your money invested.Always keep your shares at zero investment cost. In near future you will be a multy-millionare.

Answer 2

god knows

Answer 3

Basically in two ways.

1.  Stock price goes up and you sell the stock at the higher price to make a profit.

2.  Many companies pay dividends to shareholders which means for each share you own, the company will pay you a certain amount, usually on a quarterly basis.  This is on top of any appreciation of the stock price that may occur.

That's why I love dividend paying stocks especially in times of economic uncertainty.  Many solid companies are near 52-week lows because of the market downturn, but are still paying solid dividends, often higher than you would receive from interest if you put in the same amount in a money market account.  So basically you are being paid to wait for the stock price to go back up.  GE is a good example of such a stock; a solid company which a relatively cheap share price right now and a good dividend payout (almost 5%).

Answer 4

you have to sell the suckers for more than you buy them for. right now that is challenging b/c we are in a downtrending market. for instance. you can buy a stock called USO. thats united states oil. it has been as high as 147 recently I believe, and the other day was back down to 129.xx so had you bought at 129 or if you buy monday in the low 130's and it goes back up to 147 which chances are it will, or higher, then you could sell it for profit.

Answer 5

Hey Dreamer,

You profit from stocks and mutual funds in two ways, capital appreciation and dividends.

Capital appreciation is just a fancy way of saying compound interest. Study compound interest, many people grasp the concept but can't apply it to real life situations. It's amazing how much impact an additional 1 or 2% return per year can affect your wealth-building over long periods of time.  This is easier to explain with an example, so I'll pull one from http://www.money-and-investing.com/Stock...

Let’s say you have $10,000 in a savings account that pays 3% annually and you don’t withdraw money for three years.  

After one year you will have $10,300 (10,000 X 103%)

After two years you will have $10,609 (10,300 X 103%)

After three years you will have $10,927 (10,609 X 103%)

See?  Simple.  Now you’re probably thinking “whoopee… I made $927 in three years, so what?”  So let’s apply this to a real life example.  

Let’s say that you feel it’s time for you to start investing and you decide to use your savings to buy $10,000 worth of stock in  some  of the most popular US companies.  This sounds difficult but it’s actually very easy since there is an index that tracks the performance of the 500 most widely held companies in the US called the Standard & Poor’s 500 or S&P 500 for short.  The S&P 500’s average annual return for the last 50+ years is about 10%, and since it is a pretty accurate measure of overall US stock market performance, it’s perfect for this example.  

Let’s also assume that you are going to add an additional $10,000 in savings each year.  Sound like a lot?  More than likely you will only have to come up with $5,000 per year since most companies match up to $5,000 in their 401K plans.  This amount is deducted from your paycheck so you’ll never even have to worry about having enough will power to save the money rather than spending it.  

So our scenario is that you have $10,000 in savings, you are going to add $10,000 in savings per year, and you will receive the S&P 500 annual return of 10% (compound interest at 10% + $10,000 savings per year).  

- After 5 years you will have $77,156

- After 10 years you will have $185,312

- After 15 years you will have $359,497

- After 20 years you will have $640,024

- After 25 years you will have $1,091,818

- After 30 years (the length of the typical career) you will have $1,819,434

Not too shabby, and this didn't even include the dividend profits.

The other way you make money from Stocks is through dividends. Large established companies that have steady and predictable profits have another way to attract investors, through dividends. A dividend is a portion of the company's profits distributed to you, the shareholder. They are taxed differently, so just make sure you're investing in a 401k or IRA so that you never have to worry about the tax implications of your capital appreciation or dividends.

Best of luck and post here often, it's fun to watch someone on their wealth-building journey.

Cheers,

Odd Lot