Buying shares in a company benefits an investor in several key ways:

• Capital Growth: When the value of the shares increases over time, investors can sell them for a profit, known as capital gains. This is a primary way investors build wealth through stocks

• Dividend Income: Many companies distribute a portion of their profits to shareholders as dividends, providing a regular income stream. The amount received depends on the number of shares owned and the company's dividend policy

• Liquidity: Shares traded on stock exchanges are relatively liquid, meaning investors can buy and sell them quickly and with low transaction costs compared to other assets like real estate

• Ownership and Voting Rights: Owning shares means owning a part of the company. Shareholders often have voting rights, allowing them to influence company decisions and hold management accountable through mechanisms like annual general meetings (AGMs)

• Potential Perks and Discounts: Some companies offer shareholder perks such as discounts on products or services, special offers, or other rewards. While these benefits can add value, they are generally considered secondary to financial returns and should not be the sole reason for investing

• Portfolio Diversification and Inflation Protection: Investing in shares across different companies and sectors helps diversify risk. Equities also tend to offer better long-term returns than cash or bonds, helping investors protect their wealth from inflation and taxes over time

In summary, buying shares allows investors to participate in a company’s growth and profits through capital appreciation and dividends, provides liquidity and ownership rights, and may offer additional perks depending on the company. These benefits collectively make shares a valuable component of a long-term investment strategy