Stock investment allows people to increase the amount of wealth in a sizable amount even though the risks that accompany it are also large. So what are the advantages of investing in stocks? Here is the answer.

1. Dividend

Dividends are profit sharing that will be given by the company to shareholders. Dividends are divided into two types, namely in the form of cash and shares. Cash dividends are distributed by giving cash to shareholders per one share owned, while stock dividends mean that the company provides an additional number of shares owned to investors.

2. Stock price increasing

This profit is given by the company to shareholders from the difference between the purchase price and the selling price of the shares. As we know, stock prices are dynamic and fluctuate over time. This occurs due to trading activities on the stock exchange or stock exchange.

3. Small capital with big profits

The capital to buy one lot of shares is quite cheap compared to other types of investments. Usually the cheapest is around IDR 50,000 - IDR 100,000. But from this capital we can reap profits of up to 100 percent in a few days. This of course must be done with careful stock analysis.

4. Flexible and transparent

Stock investing is a very flexible activity. We don't need to sacrifice a big effort to do it, we can do all processes from buying, analyzing, and selling through the devices we have. That way we can still do other activities without being disturbed.

5. Relatively small tax

When compared to other investment instruments, stock investment has a relatively smaller tax percentage, which is about 0.1 percent of the final profit we get from the stock itself. In addition, there are no additional taxes such as paying when reporting the annual tax return because it is automatically deducted when paying off stock transactions.

Those are the benefits that can be obtained from investing in stocks. Keep in mind that stock investment has a big risk as well so it must be done carefully and thoroughly in conducting the analysis. 

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Source: cnnindonesia.com