TRADING DIRECT..!!: Why shares..??

TRADING DIRECT..!!: Why shares..??google59ecfa56db76f6ca.html

other benefits..

Divident income

apart from the appreciation in the price of the shares, dividends declared by the companies to its shareholder also act as a source of income.

Liquidity

share held as investment can be easily converted into cash without any hassels, its takes merely 2-3 working days to realise cash.

Tax benefits

all dividend income is tax free in the hand of shareholders, secondly one need to pay only 10% short term capital gains tax on the profits made from investment in shares if the shares are sold within a year of purchase, and thirdly (most important) you dont need to pay any long term capital gain tax on profits made from sale of shares held for more than a year. the point to be noted here is that the tax rate much higher for other investment instruments- a 30% short term capital gain tax ( assuming you fall in the 30% tax bracket)and a 10% long term capital gains tax.

considering the above facts shares are the best investment options to creat wealth.

Why shares..??

Shares defeat all other investment instruments and provide highest returns. this can be accepted from the fact that during the period from 1980 to 2005 bank Fixed Deposits gave an annual return of 9% while gold (another popular investment option) gave a 6% return p.a. while stock market outperformed all others and gave a stunning 18% return p.a. during this period. that too when inflation grew at almost 7% p.a. during this period.