This occurs when an individual experiences significant rise in share prices and is one of the long term objectives of investing in shares. The benefits of investing in share are many but there are few pitfalls to avoid. Copyrights © 2018 SECP. We do not sell or recommend any investment product. Like all investments there are advantages and disadvantages to investing in shares. All rights reserved. If you have been thinking about investing your money then you have probably considered investing it in shares. Shareholder Benefits. Share; Tweet; Share; Tweet; What are the benefits if you own shares? Here are some of the benefits of investing in shares. A discerning investor should know what to do at any point in time. 44000, Pakistan. Takes advantage of a growing economy: As the economy grows, so do corporate earnings.That's because economic growth creates jobs, which creates income, which creates sales. 2. Crash in share prices: Due to one reason or the other, sometimes share prices drop so much. Selling a share for more than you paid for it is known as Capital Gain. The fatter the paycheck, the greater the boost to consumer demand, which … Some listed shareholder companies from different market sectors including entertainment, retail, hospitality and financial services offer lavish discounts to shareholders when they buy goods or services from the companies or their affiliates. ADVERTISEMENTS: Some of the most important advantages of buyback of shares are as follows: 1. Trading on an exchange also allows one to sell part of the share parcels other than redeeming the whole lot. Dividends are nothing but a part of company’s profits distributed to its share … NIC Building, Jinnah Avenue, Islamabad. Companies possessing large free reserves base and are willing to use funds to purchase or acquire shares and other securities under the buyback scheme, can use their funds in a wise and effective manner. How shares are made public for the first time? There are many other benefits as we have explained in the following paragraphs: EARN DIVIDENDS. There are many benefits to investing. Dividend is a cash reward given out to shareholders as part of the profit made by the company at the end of each financial year. DISCLAIMER: Please be informed that “Jamapunji” is an investor education initiative of the Securities and Exchange Commission of Pakistan. No hassle of involving a broker or transferee and at a relatively low cost as compared to other financial products. The larger the units of the shareholdings one possesses, the more money one receives. As share buy backs change […]