Compounding on stock

please anyone explain once compounding in stock market (Equity holding) only.
E.g: If i buy a share @100 and after 2 year it'll become @200, my profile on each share is 100.
If company gave any divident it will deposit into my bank account. So how compounding is work in share market?


Well-Known Member
dividend gets deposited in bank direct yes .. theytake account number from broker ....
and yes R.s 100 stock can get converted into R.s 200 even in less then 7 month

Yes read it right 7 months

1 example i can give ya is like Route mobile

If you bought that at R.s 1000 it s 2063 today money got doubled but only thing is YOU KNOW HOW To sit tight and not sell it when u get 200 300 r.s lol

Talk of compounding only after you have capacity to not sell share for 3 yrs.. else just keep it simple and keep goal money should be double every year screw the compounding lol


Well-Known Member
Second part compounding
When u sell share tax be imposed that u have to pay .
If u dont sell share and share price is double then start keeping stop loss and u get to keep and power of tax money is with you for free
u dont sell dont have to pay tax let it ride for 5 10 yrs lol

there by u friended the compounded tax money in your favor lol and at end of 10 yrs paytax lol you be in win
on condition company is still profitable and price rises .
Like others said, the dividends will be deposited to your bank account directly. But dividends are given for long term shareholders and at times the share price itself increases a lot in value. It’s up to you whether or not to sell in such situations.

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