How To Make Money in the Stock Market?

The most recognized means of creating money within the Stock Market is by selling stock for quite you purchased it. This is called capital appreciation. If you buy a share of Reliance for Rs.1000 and sell it for Rs.1150, you’ve made Rs.150 in capital gains. But to realize your gains, you have to sell your shares. So while you’ve made Rs.150, you can no longer participate in any future growth or payments to shareholders that Reliance may make.

Another way to make money in the stock market is through dividends. Dividends are payments, companies make to their shareholders, usually on a quarterly basis. As long as you hold Reliance stock you are entitled to any dividends it pays.

You can take those dividends as a cash payment or reinvest them to buy more shares of Reliance and increase your holding, which will earn you more dividends in the next round of payments since they’re paid on a per-share basis.

Many investors make money in the stock market simply by investing in companies that pay regular and increasing dividends.

Note:- not all companies pay dividends, and even those that do have no obligation to continue. Like a company bonus, dividends are not guaranteed.

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