BENEFITS OF INVESTING IN SHARES 2

LIQUIDITY
Shares affford liquidity.They can be easily bought and sold.It takes only T+3 days to perfect a transaction on the floor of the Nigerian exchange.Where 'T' represents the day of transaction.This means that an investor can invest or divest from a company within a week.

COLLATERAL FOR LOAN
Shares of quoted companies are one of the most acceptable form of collateral to secure loans and advances by financial institutions.An investor's CSCS statement can be accepted as a collateral for loans and advances.
POTENTIAL DIRECTORSHIP OF A PUBLIC LIMITED COMPANY
Becoming the director of a public limited company is not the exclusive preserve of only those who start the company.All a prospective director needs to do is to acquire a certain percentage of the company shares(this varies from one company to another).An investor,who desires to become a director of a PLC. could also check the Articles and Memorandum of Asssociation of the company of his choice for the procedure of becoming a director.
There are so many benefits atttached to being a director of a company.Directors get emouluments for their service,and they also get all the other benefits,they deserve as an investor.
If you can, try to be one!

AUDIT COMMITTEE MEMBER
Shareholders are also eligible to be Audit commitee members.Audit commmitee members look into the acccounts presented by the company.They also get paid for rendering this service,in addition to other benefits due to them.

CONFIDENTIALITY
An investor, who does not want people to know of his interest in a company ,will find shares plesant.This is because unless you tell people about your shareholding in a company.They might never find out.

TRANSFERABILITY AND DIVISIBILITY
Shares can easily be transfered from one person to another.Parents could pass shares as inheritance to their children.This is a way of securing the financial future of such children.

VOTING RIGHT
Shareholders have a say in the affairs of the company.One of the ways they express themselves is by voting at the Annual and Extra-ordinary general meetings of the company .The board of directors needs the ratification of shareholders, before any major decision is taken.For instance,shareholders must give their consent before a company embarks on a public offer or a right isssue.They also have the rights to sack errring directors.They do this by exercising their voting right.

MINIMAL START-UP CAPITAL REQUIRED
Most profitable investments require the commmitment of huge sums of money.This is not the case with shares.A Person can start investing in shares ,with as little as Five thousand naira and watch his investment grow.What are you waiting for?

PRESTIGE AND PEACE OF MIND
Having shares also elicits some form of satisfaction.An investor ,who sees the price of his stock appreciating will be happy.Another investor,who sees a product of his company may say to himself,'I am a part owner of that company'.It could also give an investor peace of mind ,because he knows he has something to fall on in case of an emergency.
Wouldn't you rather buy shares?
The next thing I will discuss on this blog is how to pick profitable stocks.