is capital gain the prime motive behind buying stocks?
596077
Dividends are the primary reason, but everyone counts on capital gains that's why dividend yields are so low. If you're just counting on capital gains, that's not tax efficient because the value of the stock goes up just because of inflation, yet you're taxed on that (even though the real value has stayed the same).\n\nPeople here is the main reason why capital gains cannot be the primary reason... because it depends on somebody else buying it after you at a higher price? And then someone has to buy it after them. That's not sustainable. The primary reason should be dividends because the company is making money with the money you "lent" them... not keeping it all for themselves (if they don't pay dividends).
221570
Could be a lot of factors. I would say now it is Interest Rates. Investors may be Speculating that rates will soon go up. Normally when interest rates rise you will see negative fluctuations in the Stock Market because it is a Company Expense. The Bond Market will actually perform better in time. Then as the Economy Dictates the Investors will hopefully sell the Bonds at a profit and reinvest into Stocks. This is how I see this and may be wrong, but, it has worked for me when I invested in this manner.
786480
In the U S,  tax rates on long term gains are about 1/2 thoses of short term gains.  \n\nThe longer you hold a stock, that is increasing its earnings, the longer you can hopefully accumulate capital gains without paying any taxes on those gains and the longer you will accumulate gains.  \n\nAn example:   one share of MMM purchased on Jan 2, 1970 at an adjusted cost of $2.18 is now worth $79.19,  a 36x increase in 36 years.   The dividend today is a $1.84. That is almost as much dividend as the value of the original purchase.  Of course, putting all this in perspective, today a dollar is worth about $0.25 in 1970 values.
711483
Hello,\n\nI completely agree with wanting to invest your money.  Afterall, what's the point of making money if you can't make more money with your money (got that?)?  Anyway, I've tried all different investments from stocks and bonds to IRA's, 401k's, and real estate.  I'm really a big fan of diversification.\n\nHowever, the only investment I've really been happy with so far is real estate.  Over the past 5 years, I've bought 3 different properties (all have tenants, and I'm making more than the mortgage payments on 2 properties).  \n\nThe 3rd property I got  was using Carleton Sheets no money down methodology (he's a GURU in real estate, and yes, his methods do work!).  You can actually buy a property for absolutely nothing down (NO MONEY FROM YOUR OWN POCKET).  I payed over $500 for his course 3 years ago, and I just saw it online for $9.95!!!!  This is a steal at $9.95 (I'm actually going to buy it for my friends for Christmas).  It was featured on TV, so I got the website from there.\n\nBefore you invest in anything, I highly suggest the Carleton sheets course.  http://www.alllsite.info/real-estate.php
1002653
I wouldn't characterize current capital gain rates as "huge" in any case.  However, you may have some gain that is not eligible for capital gain rates.\n\nThe traditional way of deferring gain from disposition of real estate is to arrange a like-kind exchange.  For example, if you want to reinvest your sale proceeds in another property, you can arrange for an intermediary to purchase the other property, then trade it to you for the property you are disposing of.\n\nYou should consult a qualified advisor for more complete advice.
772126
Yes..It depends how active the stock is and if it is widely held.. Some very small stocks have very little volume..less buyers and sellers - therefore more time would be needed vs seconds for a larger stock.
1073687
I'm buying carefully chosen stocks that appear to be very undervalued with big moats.  \n\nI sold out a lot of positions just before the fall so have plenty of cash - planning on putting about half of it back in the market between now and mid July.
917273
To make profit for their shareholders, no other reason.  That is why any business is started.
1180201
If you could only realize how silly this question is, you would not try to sound like you know something about investing. Nor would you pose a question with so many unlikely decisions already made.\n\nFirst, "doing well" is subjective; different for everyone. If you cannot be specific, you just don't get it. Investing and trading is precise, not general. Like, how much steel should I use in this building, in general?\n\nSecond, in all of the plans you've made in your life, how often does it work out as planned? Almost never, right? Something's always a little different than the plan. So, how much money you "expect" to make is irrelevant.\n\nThe sad part is, that you "expect" to make money at all, from knowing nothing at all about what you're doing. It just doesn't work that way, or am I the one being silly? \n\nThird, you are focusing on profits, exactly the opposite of what you should be focusing on. The number one rule of investing is capital preservation, which means managing risk and losses first, then if you don't lose it all, profits will come eventually. Warren Buffet's #1 Rule, "Never lose money." Making money comes after you learn something. Making sound investment or trading decisions requires more than a click of the mouse. Cheap and easy does not equal successful trading or investing. Nothing substitutes for research and education. It is a burning desire to achieve mastery that produces success, not a burning desire for money.\n\nFourth, a "good" stock is subjective; different for everyone. What exactly do you mean? "Good" stocks lose money every day.\n\nFifth, if you invest "$2000 into seven stocks," either you're talking about penny stocks, or just a few shares of each one, and just from the initial hit of commissions on seven stocks will put you down by !0% before you ever begin. The $2,000 is barely enough to buy a hundred shares of one "good" stock, let alone seven. If you buy 100 shares of IBM, that will cost you $9,000. Don't even think about penny stocks, where manipulation is rampant and companies come and go faster than you can keep track of them.\n\nYou have quite a bit to learn before you can post a relevant question. Stick it in the bank, and count yourself lucky to have $2,000.
456214
I'll give you what you need to know to make smart buys. The best way to go is a mutual fund. There are many companies who do this just find one and put money into it. Then you set what you want to invest in...what companies that is. The best way to go for sure profit is large corporations...don't worry about which ones...that's what the mutual fund is for...the accountant deals in what. He makes a small commission so you doing well is in his best interest. At the great depression...the average was still 3% gains. Today it's realistically 10%. Small corporations have a much higher percentage of increase in value because they start so low. Putting a quarter to a third of your mutual fund towards smaller companies wouldnt be a bad idea. If you have any other questions just email me...nbrikha@yahoo.com
168051
Owning shares in companies is one of the greatest freedoms of a democratic society. You are wise to consider investing. Different people have found great success buying shares in different ways. \n\nWilliam O'Neil, Warren Buffett, Gary Kaltbaum, Peter Lynch, and Dave Landry are all successful traders. You can find more information about them on the web. I would recommend Gary Kaltbaum's book, The Investors Edge.\n\nThere is no easy money out there. Expect some hard work and some humbling from the market. It is, however, entirely possible to grow an acorn into a mighty oak.
930378
Firstly, so that the business owner has an idea of what to expect so he can judge whether the business stands a chance of success and so that he can monitor events once it starts trading and compare them to what was expected in the cash flow.\n\nAnd secondly, so that lenders and providers of capital can be convinced that the business represents a good investment
56741
Capital gains occur when the share price increases and the fund sells those shares - the gain is the selling price minus purchase price.\nDividends are payments made by the companies based somewhat on profits from the company.
742384
There are several main differences.  Buying a mutual fund allows you to spread your risk among many different stocks.  Buying stocks concentrates your risk among only the stocks you buy.  \n\nPros and cons:\n\nMutual funds have to distribute realized captial gains each year so you have to pay taxes each year.  That is a con.  They also have expenses they charge to the investor, about 1.5% on average.  That is a con.   They invest in a diversified number of stocks.  That is a pro.   A good mutual fund returns on average about 10% to 13% annually over a long period of time.  That is a pro. \n\n By purchasing stocks, as long as you do not sell them you do not have to pay taxes on the capital gains.  That is a pro.  You need to own about 10 different stocks to minimize specific risk.  That is a con.  Some investors can not resist selling their stocks when they receive a 50 to 100% increase in value.  That is a con.  Some investors hesitate to sell their stocks when the price drops 25%. They think the price will recover.  That is a con.  Some investors can not resist the hot stocks and buy them when they have reached their peak.  That is a con.  \n\nA good stock is definitely more profitable than a good mutual fund.  But a good mutual fund will give you more consistant annual returns year after year after year.
988138
If you are getting money from the public then you want to be a publicly traded company (stocks etc).  The initial investment for the NYSE to investigate the worthiness of your company is very expensive.  And since you are just starting, the odds are pretty low-- no track records.\nIf you believe in your company then raise the money yourself, or get a business loan.
344510
Cons-Shady companies reporting 'fake' earnings to boost their value.\n\nPros-As an investor, it would surely set my mind at ease.
802098
This is a great company to invest in.....They are gaining market share. As an employee - if you are skilled - it might be a great Future. \n\nUsually rewards follow performance.   :o )