There are 2 types of benefits that you can get by investing in stocks, namely capital gains and dividends. Capital Gain is the difference between the selling price which is higher than the purchase price. Meanwhile, dividends are the distribution of profits from the company's performance. Usually, dividends are distributed once a year. Please remember that the distribution of dividends depends on whether the company is profitable or not, and whether the company decides to distribute the dividends. Therefore, the nominal dividends distributed can be different every year. In addition, by becoming a shareholder, you are entitled to attend the General Meeting of Shareholders (GMS) and can participate in making decisions for the company, according to the proportion of your ownership.
Where do my profits come from when I invest in stocks?
Was this article helpful?