Part Of A Well-Balanced Portfolio

 

Long-term investors should own equities because they have the potential to provide better returns than any other option. However, in order to reap the benefits of higher returns, you must be willing to take more risks. Despite these dangers, all but the most cautious investors should include stocks in their portfolios since they can generate above-average long-term returns.

 

Finding Stocks That Are Right For You

 

You own a piece of a company when you invest in stocks, and you have a vested stake in how it succeeds. Stocks are divided into two categories: common shares and preferred shares. The owners of a corporation are the common shareholders, who contribute the equity capital needed to continue or expand the business. You may have the right to vote on the company's board of directors, executive officers, and other crucial decisions that could determine the company's fate if you own common shares. Preferred stock entitles you to dividends and a claim on the company's earnings before it is distributed to other shareholders. To establish the qualities of any given share, you must look beyond these classifications as an investor.

 

Thousands of stocks are available to investors, each with its own set of features, prices, and benefits. It might be difficult to sort through all of these options to determine what is best for your portfolio. That's when the benefit of expert guidance comes into play. Your SGI Securities Financial Advisor can provide you with the crucial stock market knowledge and access.

 

Benefits Of Stocks

 

Stocks offer the following advantages:

 

-- The long-term growth potential of common shares is good.

-- Dividends to shareholders may be paid if the company makes a profit after expenses.

-- Capital gains and Canadian dividend income receive preferential tax treatment.

-- Over time, they usually outperform the rate of inflation.

-- Possibility of influencing company direction; part ownership of a corporation

 

Get the assistance you require

 

You can choose equities to design a portfolio that takes into consideration your investing risk profile, time horizon, and goals with the help of your SGI Securities Financial Advisor. Contact us today to learn more about how we can assist you.