Payments made by a business to its shareholders and investors are what’s known as dividends. When a business’ earnings become a profit, it can be re-invested into the business (retained earnings) or it can be paid to its investors as a dividend. Companies are under no obligation to pay its shareholders dividends; however, the company’s [...]
ISA’s – individual savings accounts
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ISAs (Individual Savings Accounts) are yet another option for those wishing to grow their money over the long term and provide an income. There are basically two types of ISAs: cash ISAs or a stocks and shares ISA, but it’s important to remember that the biggest advantage of ISAs is that returns are tax free. [...]
Mutual funds – picking the right fund.
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Becoming familiar with the process and aim of mutual funds is integral for any aspiring investor. Being a collection of stocks and bonds (from which the investor earns dividends on stocks and interest on bonds), a mutual fund can be bought very simply; any bank can set up its own mutual fund for you and [...]
