people buy shares of a certain company why?
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They buy shares to get dividend on that. Means to get something interest type. When people buy shares of some company then the company give him or her money on that share. It depends on the rate of dividend.
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There are three reasons
1. Dividends look attractive – with the UK market currently yielding around 4.5pc, shares are attractive relative to many other income-producing assets, especially so given their inherent potential for capital appreciation.
2. A growing income – attractive (and sometimes growing) dividends can still be found. In the UK, sectors like the utilities offer investors a robust and reliable income stream. Increasingly many small and medium-sized companies offer healthy dividends, as well as the potential for capital growth.
3. Overseas potential – where dividends were once a predominantly UK phenomenon, the trend for returning cash to shareholders is rapidly taking hold overseas. Across Europe, Asia and even in the emerging markets, dividend culture is well and truly on the up. Today's income-orientated equity investor can enjoy a large and more diverse pool of companies in which to invest.
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1. Dividends look attractive – with the UK market currently yielding around 4.5pc, shares are attractive relative to many other income-producing assets, especially so given their inherent potential for capital appreciation.
2. A growing income – attractive (and sometimes growing) dividends can still be found. In the UK, sectors like the utilities offer investors a robust and reliable income stream. Increasingly many small and medium-sized companies offer healthy dividends, as well as the potential for capital growth.
3. Overseas potential – where dividends were once a predominantly UK phenomenon, the trend for returning cash to shareholders is rapidly taking hold overseas. Across Europe, Asia and even in the emerging markets, dividend culture is well and truly on the up. Today's income-orientated equity investor can enjoy a large and more diverse pool of companies in which to invest.
IF YOU LIKE PLEASE MARK AS BRAINLIEST
Adarsh38:
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