How can I earn from the stock market?
Investors can profit in the stock market through any or a combination of the following:
- Capital Gains
These are profits made due to an increase in the market price of a stock from the buying price.
- Cash Dividend
A dividend given to shareholders in the form of cash. It is computed by multiplying the number of shares held by the cash dividend rate declared.
- Stock Dividend
A dividend given to shareholders in the form of additional stocks. It is computed by multiplying the number of shares held by the percentage of the stock dividend declared.
- Stock Rights
Stock rights offering is the option given to the present shareholders to buy additional shares of stock at a price lower than its market price.
