Invest in Forex?

With the purchase of a stock, you become a small shareholder. If the company in question is successful then you benefit from dividends and price gains. You also obtain a voting right at the shareholders meeting and you generally have priority with the issue of new shares.

Why invest in shares?

With the current low interest rates, inflation levels and high capital gains tax, many people see their net worth decline rather than increase. In order to grow your assets, you should be willing to stop saving and take more risk, because investing alone gives you the chance to achieve a higher return. The average return on the AEX shares over the past 25 years - including the dividend yield of 3% - was around 7% per annum. Of course, there is an element of risk involved in investment than there is in savings.

Dividends and price gain on shares

If a company makes a profit, it may choose to pay (a portion of) the profits to its shareholders. This dividend is an important reason why many investors choose to buy a share. Dividends on shares can be an interesting alternative to a savings account because you also generate a fixed income on your assets. A well-known dividend share is oil giant Royal Dutch Shell, which in its long history has paid yearly dividends to its shareholders. Companies that are not doing well will generally lower or even terminate their dividend payout. However, even companies that are making losses can decide to pay dividends to  shareholders. This allows the management to signal that it still has confidence in the future of the company. A company is not required to pay out a dividend and may instead choose to invest it. In particular, young companies in particular hope to increase their growth, which is ultimately in the interests of their shareholders. Investors who invest in these types of growth shares are not principally interested in the dividends, but hope to achieve their return on share price gains.

Buy shares with BinckBank

At BinckBank, you can invest in shares at various stock exchanges such as the London FTSE, German DAX, the US based NYSE and NASDAQ, and of course the Amsterdam Stock Exchange. Here you can trade in well-known European stocks like Philips, ING and AkzoNobel, as well as important international  shares such as, Apple, Alphabet, HSBC and BP. Want to buy a stock? Itś simple with BinckBank. Open an account, make a transfer and you can get started right away. More information on stock features and risks can be found in the document center.