Compounding on stock

#1
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?
:rolleyes:
 

Vmaster369

Well-Known Member
#2
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
 

Vmaster369

Well-Known Member
#3
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 .
 
#4
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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