The Share Profit is Not Only Money

Buying shares is like buying basic things, it means that buying and selling shares every day and every time. Not like buying a perfume that have to wait in a long time when the perfume was gone. That is the way if you want to get the maximum profit of share. But the real advantage of this business, actually more than that.

At least there are three financial sources that can be referred as the profit share:

First is the dividend. The companies put a considerable advantages, it will distribute a pretty good dividend for you. Dividends are usually distributed once each year.
Second are capital gains. Capital gains obtained from the difference between the purchase price of shares and the selling price. If the purchase price is USD 10 and the selling price is USD 20. It means that the profit is USD 10 per share. That is not bad at all if you have 1000 pieces, the advantage is to million.
Third is the shares bonus. The company is rarely distributing bonus shares. Bonus shares are taken from the share premium. Share premium is the difference between the selling prices of these shares at a nominal price when the company made a public offering in the primary market. For example, each share with par value of USD 1 is sold at USD 2 then each share will give premium to the company amounting to USD 1 per share.

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