An individual ownership in a company or a corporation is termed as stocks. Sine an individual does participate in the growth of the company through stocks, one is therefore entitled to the earnings and the asset that a company or corporation receives. An individual can therefore benefit from the stocks that they buy from a corporation.
Primarily, given that there is an increase in the economic growth then there is a reciprocate growth in the earnings of stock. This is because profit of the company therefore increases due to the cash inflow that is brought by the growth of the company. Given by the fact there are stock brokers who have an upper hand in buying and selling of stocks and also the fact that one can easily access the website of the company and buy the stocks then buying of stocks has been made easy.
It is important to recognize that stocks are characterized of having high returns. Majorly because stocks have high returns, an individual therefore enjoys from the high earnings they will have from the company. Diversification is a nature that stocks have since one can easily buy from different countries and also from different countries. This therefore increases the growth opportunities ratio since one is not limited from just buying stocks from one company. A fact is that each individual have the urge to use money or either there might be an urgent need of money. This issue can be easily worked on given by the fact that stocks can be easily liquidated and therefore stocks can be easily converted to cash.
Given that an individual makes a decision to sell their stocks, then they are guaranteed to make a profit from that. This is given by the fact that a stock holder has the right to sell their stock at a higher price than they originally bought at. Additionally, an individual based on the stocks they have can be able to get an employment opportunity at the company in which they have shares with. The directors of companies are appointed using the number of stocks that an individual has in the company. An individual therefore has the opportunity to apply for a director position if they have the amount of stocks that the company has stated one can be able to get the job.
In conclusion, the most important advantage of stocks is that it has a limited liability. Given that a company closes down an individual escapes from suffering loss as well.