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.