Financial

Profit and Loss Investing in Stocks

Rtvassen.comProfit and Loss of Investing in Stocks – There are many stories circulating about someone suddenly getting rich because of investing in stocks. One example is Warren Buffet, an entrepreneur, philanthropist, and billionaire investor who suddenly got rich by investing in stocks.

The stock itself is one type of investment that has a high risk or high risk, but also has a high return or called a high return. This means that an investor who takes a high risk will get a higher return, and vice versa.

This is because stock prices can quickly change every hour so that the value of shares in the stock market is difficult to predict. Even many people are tempted by the lure of big profits, but in the end, they end up being harmed. Before you decide to play stocks, consider the following advantages and risks of investing in stocks.

Advantages of Investing in Stocks

Capital Gain

A capital gain or increase in share price is the profit from the difference between the selling price and the purchase price of shares given by a company to shareholders. This means that the selling price must be higher than the purchase price.

Dividend

Awarded to shareholders of investors. The bigger the shares owned by the investor, the bigger the dividend he will receive.

Ownership

This means having ownership of a company in accordance with the percentage of shares owned. Also has the right to attend the general meeting of shareholders.

Disadvantages of Investing in Stocks

Capital Loss

A capital loss is the opposite of capital gain, namely a decrease in stock prices. This situation occurs when the selling price of the stock is lower than the purchase price.

illiquid

Illiquid means that the shares are less attractive, unpopular, and only a few are outstanding, so it is very difficult to resell the shares.

Delisting

Delisting is a situation when there is a delisting of shares on the Indonesia Stock Exchange which results in the shares no longer being transactable through the IDX. This is because of the company’s inability to be disrupted or because of its own request.

Those were some of the pros and cons of investing in stocks, hopefully, it will be useful.

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