What are the advantages of investing in stocks?

The stock market appeals to so many people because it makes available significant financial growth with minimal effort. Investing in stocks means that you pay for partial ownership of a company that you never have to work at. You can share in the benefits of owning a portion of a successful business, with no other obligations.

Can't loose more than investment
Unlike owning a business, in the stock market you can never loose more money than you invest initially. With stocks you know what you are risking up-front. You will be entitled to a portion of the benefits of a successful company, but never the debts. You are not responsible for poor behavior, illegal actions, or even complete company failure.

Can make money from dividends
It is in a company's best interest to make their stock as desirable as possible. A company increases demand for their stock when they make it more appealing to share holders. They do these things trough dividends. Dividends are periodic disbursements of money proportionate to the amount of investment that you have in the company. So, the more shares you have, the bigger your dividend payout will be. Other stock market investors fell safe that they will see a return on their investment if they invest with a company that they know will pay out dividends. This makes demand for your stock increase. When the demand for your stock increases, your stock becomes more valuable.

Can make money from liquidations
When a company has reached its limits and must dissolve, you are entitled to a portion of the existing assets. As a shareholder, you own part of that company. The company in question is obligated to treat you as a partner and give you your appropriate portion of remaining assets and property.

Can make money by selling stock
When you are a shareholder in a booming business, your stock is going to appreciate in value. The nature of the relationship between supply and demand is that when the demand for something is high the supply is low. When the demand for your successful stock is high, you are less likely to want to sell it so the supply decreases and the cost increases. If you decide that you wish to sell in these conditions, you will benefit form the increase in the difference between your initial purchase price of the stock and the higher price that you sold it for.

Make sure to continue buying stock that is advantageous:
Be wise in who you invest with. Look for continuous improvement. Mergers and acquisitions are good signs that the company is growing in its resources. Long term potential needs to be seen in proposals and presentation of projects. Numbers of newly released products or ideas are not necessarily indicative of success. Make sure you know your companies well enough to know it they are the type of company that comes up with lots of small ideas or a few well-though out ideas. Both situations lead to financial success. You wouldn't want to disqualify a company from being a good investment based on the fact that they are thorough. Also keep in mind that diversity is important when looking to invest in a company. You do not want to invest in a company that is so specified in one certain area that they risk becoming obsolete. Look at the company's past financial records. A company should be managing their profits well and not jumping to spend money or acquire a company at the drop of a hat. Long time savings plans within a company show wise planning for the future.