5 Best Shares to Sell in Nigeria

The Advantages of Shares Trading

Streamlined transactions

👉 When an investor purchases stock in a certain company, they become a shareholder in that company. As a result, investors will feel like they have a stake in the company after purchasing stock.

👉 Ownership entails becoming a shareholder and participating in the management of a corporation. Investors will be able to participate in the decision-making process by casting a vote.

👉 In addition, they receive annual learning reports, which provide them with more in-depth information about the business. Investing in the stock of a company is a great way to show your support for the firm’s future development.

Asset diversification

👉 It’s important to remember that stocks, unlike other investments like bonds and real estate, fluctuate in value on their own.

👉 Investing in equities for a lengthy period of time will assist an investor better predict the losses of other investments.

👉 In addition to the increased risk, adding stocks to an investor’s portfolio can also result in substantial and quick gains, which can help investors steer clear of overly conservative investment plans altogether.

Dividends earnings

👉 Dividends are payments made by a firm to its shareholders. To put it another way, it is a recurring annual payment made by a firm to its investors as an extra source of income.

👉 Even if the stock’s value has dropped or it represents a profit from the shares, dividends will be paid out.

👉 An investor’s portfolio can expand over time with the support of dividend income, which can be used to fund a retirement or another investment.

The benefit of liquidity

👉 Stocks are sometimes described as a type of “liquid asset” because they’re easily exchangeable for cash that has multiple purchasers at any given time.

👉 However, finding a buyer for some assets, such as property, is more difficult than finding a buyer for other assets.

👉 Stocks, on the other hand, are significantly simpler to trade due to the enormous amount of transactions on the NSE and BSE on a daily average. As a result, many buyers and sellers are keeping tabs on a certain stock.

You can take advantage of economic growth

👉 Corporate profits rise in tandem with the expansion of the economy. This is due to the fact that economic expansion generates jobs, which in turn generates revenue, which in turn generates sales.

👉 The larger the pay check, the bigger the boost to consumer demand, which results in increased revenues flowing into the cash registers of businesses. It can assist with comprehending the four phases of the business cycle: expansion, peak, contraction, and trough (or bottom).

Easily accessible

👉 Purchasing and selling stock in a company is simple thanks to the stock market. You can obtain them from a broker or a financial broker, or you can purchase them online.

👉 Once you’ve created an account, you’ll be able to purchase stocks within minutes. A small business owner may even have the option to invest in stocks through the company that employs him or her.

Profit can be earned by both buying and selling

👉 The majority of investors plan to buy low and sell high. They make investments in rapidly expanding businesses that are expected to grow in value. This is appealing to both day traders and investors who prefer to acquire and hold stocks.

👉 A small number of investors are hoping to profit from short-term trends, whilst a larger number are hoping to see the company’s earnings and stock price increase over time. They both feel that their stock-picking abilities will enable them to outperform the market in the long run.

👉 Other investors desire to receive a consistent inflow of cash. They invest in dividend-paying firms by purchasing their stock. Those businesses are expanding at a moderate rate.