Advantages for Stockholders
As part owner of a corporation, you may be entitled to share in the profits of the company. There
is also a chance that the company will grow and the price of the stock may rise.
If the company achieves economic success, the stock value will go up and stockholders will
benefit. For example, if you invested Rs.1,000/- to buy 100 shares of a company at Rs.10/- each and the
shares rose to Rs.13/- each you would gain Rs.300/-. This is equivalent to a 30% return. In cases like
this, both the stockholders and the business would be pleased.
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