When we have bought shares, it means we have become part of the issuer. My current observation is that many stock investments are made by students, especially from the economics faculty, besides they can directly practice how to invest in stocks they will also benefit from the difference between the purchase price and the selling price (capital gain). will also benefit from sharing company profits (dividends).
Not unlike other investment instruments, stocks also have advantages and disadvantages, so we don't only study the advantages but also need to study the disadvantages so that our mentality will be stronger to face market situations that will always be different and fluctuate.
There are several dis-advantages of investing in stocks as follows:
1. Capital Losses
Capital loss occurs if the purchase price of shares is higher than the selling price. In fact, stock investment is for the long term, so when a crash occurs, there's no need to panic and don't rush to sell shares.
2. No Dividend Distribution
Dividends are company profits that are distributed to shareholders, so if the company loses, no profits are shared.
3. Suspend
Suspend is an act of stopping the trading of certain shares by the stock exchange authority, so investors cannot sell their shares on the stock exchange until the suspension is removed.
4. Stock Delisting
Stock delisting is the removal of certain shares from the stock exchange, because the shares have not been traded for a long time, or sleeping shares.
5. Company Liquidation
Company liquidation or dissolution of the company will cause the shares that have been issued to fall in price, so that it will be detrimental to investors.
Not unlike other investment instruments, stocks also have advantages and disadvantages, so we don't only study the advantages but also need to study the disadvantages so that our mentality will be stronger to face market situations that will always be different and fluctuate.
There are several dis-advantages of investing in stocks as follows:
1. Capital Losses
Capital loss occurs if the purchase price of shares is higher than the selling price. In fact, stock investment is for the long term, so when a crash occurs, there's no need to panic and don't rush to sell shares.
2. No Dividend Distribution
Dividends are company profits that are distributed to shareholders, so if the company loses, no profits are shared.
3. Suspend
Suspend is an act of stopping the trading of certain shares by the stock exchange authority, so investors cannot sell their shares on the stock exchange until the suspension is removed.
4. Stock Delisting
Stock delisting is the removal of certain shares from the stock exchange, because the shares have not been traded for a long time, or sleeping shares.
5. Company Liquidation
Company liquidation or dissolution of the company will cause the shares that have been issued to fall in price, so that it will be detrimental to investors.