How do we Earn in the Stock Market?

Friday, March 9, 2012 0 comments

How do we Earn in the Stock Market?

1. Capital Appreciation
2. Dividends

1. Capital Appreciation

The price of the stock you buy today will change in 1, 3, 5, 10 and 20 years time.


Below is the Charting History of Jollibee.
Year 2000 The value of Jollibee is around 10 to 20 pesos per share.
Now Jollibee is at 100++ Pesos per share. Thats 10 times the value of your original investment.




2. Dividends

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders

Below is the Dividend History of Jollibee. Normally the company gives once or twice every year in the form of cash or additional shares.
How it works?
Just multiply the number of shares that you have to the Dividend Cash announced by the company.

Year 2011: 0.57 Cash

Example you have 100,000 shares of Jollibee.

100,000 * 0.57 = 57,000

This amount will automatically be credited to your Citisec account on the Payable Date announced by the company. In our example above the payable date is Dec 16, 2011.


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