Flores, Melcyzedeck M.

WATCH, REACT, APPLY Stocks & Dividends

2BSA-6

As a student, I am really interested in investing and like reading, watching, and learning
everything to know about stock investment. So, when watching the video clips, the first thought
that came to me was, "Why do people need to invest in stocks?" A really good inquiry from
those who are unsure of the matter. A rise in the price of stocks can result in capital gains or an
increase in the asset's worth, both of which boost your wealth. People buy in stocks for a number
of reasons. For those looking to make money, investing in the stock market is a worthwhile
investment since it makes it possible to do so more quickly. Investing in stocks and stock mutual
funds is the most effective approach to increase your money over an extended period of time.
When it comes to money, many individuals decide to increase their wealth. Others utilize their
funds to set up businesses, as capital to purchase goods and resell them at a profit. One of the
main sources of income utilized by individuals or businesses to operate or grow their business
organizations is the stock market. Additionally, because it offers liquidity that enables investors
to easily exchange their assets, the stock market presents a long-term investment opportunity to
both individuals and corporate entities. Contrasted to other investment alternatives, the stock
market offers a reliable performance of a diversified portfolio of equities, despite the fact that
stock market investing might be dangerous. Due to these factors, investing in the stock market
provides a number of benefits. These benefits include high returns, the possibility for individuals
to contribute to the growth of the economy, long-term and flexible investment options, little legal
risk, and the flexibility of trading. Contrarily, there are a number of drawbacks to stock market
investment, however they are exceeded by the benefits. The major drawbacks of stock market
investing include the lack of guaranteed returns, the high expenses and risks involved, and the
time-consuming nature of the process. Therefore, even though stock market investment may be a
very dangerous endeavor, due to its many advantages, it is a worthwhile method of short- or
long-term saving and investing.
Stock Dividends is a portion of a company's profits that is given as either stock or cash to
shareholders. It is often paid on a quarterly basis as a gift to investors. The declaration of a
company's intention to pay a dividend on a specific date is as good as a promise, unlike the share
price, which might fluctuate from day to day. Therefore, it's crucial to take into account a
company's financial fundamentals when choosing stocks, such as profits, operating margins, and
Flores, Melcyzedeck M. WATCH, REACT, APPLY Stocks & Dividends

2BSA-6

cash flow. When considered collectively, these elements can provide a fair picture of the
company's current financial situation and its prospects for short- and long-term profitability.
The issuing of shares is one of the most well-liked methods of corporate capitalization. To
successfully complete the capitalization process, the business's sales managers will need to work
with other divisions of the public stock company and be persistent in persuading potential
shareholders to buy company shares. The dividend policy is an important consideration when it
comes to attracting and keeping shareholders. According to the company's dividend policy,
accruing earnings are computed and converted into periodical distributions, which are then
dispersed to the company's shareholders. The dividend policy is the deciding factor, which
stimulates a person to invest, according to the general consensus among experts and
businesspeople in this respect.
The study of law will provide you the skills you need to handle complex situations, comprehend
human reasoning, analyze actual instances, and communicate clearly and effectively in both
written and vocal form. Your personality will play a big part in how successful you are in this
career. So for me, It is important to have a basic understanding in assessing the Revised
Corporation Code of the Philippines (REPUBLIC ACT NO. 11232) because it can help us to
spot the potential legal issues, to make better decisions and know when to seek legal help.
Especially, when choosing a legitimate or lawful stock market company where we can invest our
money. And, I believe that all of my knowledge in this course can help in the future to anticipate
the legal needs of the company where I worked or may be my own company.

SOURCES:
https://ivypanda.com/essays/investing-in-the-stock-market/

https://www.nerdwallet.com