The Secret to Creating Wealth With Shares

The secret to understand shares correctly

When you purchase shares in a business, you become one of the owners of that business. A shareholder means: a joint owner. For example, if a business is divided into one million shares and you purchase one share, then you will own one millionth of that business. As long as the business continues to operate, you will own one millionth of the annual profits, which the business generates. If the business can consistently make more profits each year, your portion of those profits will obviously also increase year after year.

You should see yourself as a "partner" in a business that's managed by other professional people. Although you are one of the owners of the business, you never have to do any work in the business, as the employees of the business do all the work and, obviously receive a good salary in return. After these salaries and other business expenses are paid, you and all of the other owners, i. e. shareholders, will exclusively share in the business's remaining annual profits.

What happens to this profit every year?

Two things. A portion of the money is invested back into the business every year, so the business can expand and grow. New equipment is bought, retail space is expanded, new projects are embarked on, etc. The rest of the money is paid out to you and the other investors.

These payouts are known as dividends. If the business expands successfully, you will receive a larger dividend payout the following year. . . an even larger payout the year after that. . . etc. In this way, you will receive a growing stream of passive income from the business without having to personally do any work in the business.

How to create wealth with shares?

To create great wealth with shares, you need to invest in good businesses and give these businesses enough time to grow. As the businesses grow, the value of your shares will also increase. In the meantime, you will receive a stream of dividends that increase annually

Therefore, the most important secret for successful share investments is to understand that you become a joint owner of a business. If the business grows, the business's assets and profits will increase and this is how your shares increase in value. If you purchase shares in excellent businesses and you are patient, it is guaranteed, so to speak, that you will become extremely wealthy over time.

Obviously, the big secret is to uncover excellent businesses. There are many businesses on the New York Stock Exchange that you can buy shares in, but only a few of them are truly excellent businesses.

The Secret behind Million Dollar Blueprint products online

Potential investors aren't aware of the share investment information I explained above. They are lured to million dollar blueprint products available online. These self claimed investment experts sell what they call million dollar blueprint platforms. They claim that they have come up with million dollar secret tool, tool to make instant wealth in the stock market.

So, be warned, don't purchase any million dollar blueprint. Search for reputable stock broking companies, preferably offline or email the Stock Exchange directly or make a telephone call and get advice.

Martin is premium member at Wealthy Affiliate online marketing training. At WA beginners, experienced internet marketers alike, are trained the fundamentals of online marketing industry.Wealthy Affiliate goals are to train members to build successful online business of any magnitude.