At certain point of time
raising capital is required during the company's life cycle in distinct forms
such as covering start-up costs, paying for a
development or subsidizing working capital. Business investment alternatives
are not same for all the small businesses, the choices rely upon on the business, the business’s time in operation and the
aggregate income the business procures every year.
Most private companies have a chance to access capital through debt or
equity investment. Both funding alternatives have their distinct favorable
circumstances and drawbacks. How equity investment can be your best take, here
are the few reasons suggested by experts
of Khalifa Al Saif, a leading
company which delivers equity investment services to Global organizations:
Benefits of Equity Investment
Dividend: An investor is authorized to receive a regular
income in the form of dividend from the company. The companies usually pay out
the regular dividends in good & bad
economic times, typically paid quarterly.
Capital
Gain: The other origin of return on investment
apart from dividend is the capital gains. With
the expanding growth of the company, the market cost of the stock increases, prompting
to capital gain for the investors.
Limited
liability: Liability of investor or shareholder is constrained
to a certain range of the investment made. If the company face losses, the
share of loss over and above the capital investment would not be borne by the
investor.
Exercise
control: By investing in the organization, the investor
acquires ownership in the organization and because of this he can exercise
control. In legal terms, he gets voting rights in the organization.
Liquidity:
Under this benefit,
the investor can sell their stocks whenever they want to. Stocks are not
as liquid as your reserve funds in your
bank account, however they are a nearby second, considerably more than real
estate. An investor can normally get their cash from a stock deal within a
week.
Go for Khalifa Al Saif Reviews if you still have doubt regarding how equity
investment is symbolized as boon for many of our clients in their business and
they have shared their experiences as well.