•3 years
Does compound interest also apply when buying a company / ETF?
Hi! I've read a lot about the so-called compound interest. I would like to know if it also applies when buying a company / ETF?
Hi! I've read a lot about the so-called compound interest. I would like to know if it also applies when buying a company / ETF?
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I see only one option to use "compound interest" when investing in company shares - the company pays dividends on a regular basis, for the amount of dividends you receive (as a shareholder) you buy another block of shares in this company (and you are convinced that the company will develop).
I see only one option to use "compound interest" when investing in company shares - the company pays dividends on a regular basis, for the amount of dividends you receive (as a shareholder) you buy another block of shares in this company (and you are convinced that the company will develop).
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D
Compound interest is often called the "Eighth Wonder of the World," and it fully deserves the name. It is thanks to him that the systematic investment of even small amounts brings profits. As above, reinvest the paid dividend, i.e. buy more shares, e.g. some so-called aristocrat of dividends.
Compound interest is often called the "Eighth Wonder of the World," and it fully deserves the name. It is thanks to him that the systematic investment of even small amounts brings profits. As above, reinvest the paid dividend, i.e. buy more shares, e.g. some so-called aristocrat of dividends.
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D
Retail EDO bonds use this rule and all accumulating ETFs, in particular following TR-type indices. Such ETFs have such an advantage over dividend investing that you avoid having to pay dividend tax immediately, and in addition, you can account for possible losses that the disposal of units of this type of ETFs with profits in subsequent tax years.
Retail EDO bonds use this rule and all accumulating ETFs, in particular following TR-type indices. Such ETFs have such an advantage over dividend investing that you avoid having to pay dividend tax immediately, and in addition, you can account for possible losses that the disposal of units of this type of ETFs with profits in subsequent tax years.
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O
"Of course! Compound interest applies not only to deposits or other financial instruments, but also to investing in companies or ETFs. If you invest in stocks and shares, the rate of return can be calculated using compound interest, taking into account the growth of the investment value in subsequent periods. Therefore, it is worth understanding this concept, regardless of what you are investing in."
"Of course! Compound interest applies not only to deposits or other financial instruments, but also to investing in companies or ETFs. If you invest in stocks and shares, the rate of return can be calculated using compound interest, taking into account the growth of the investment value in subsequent periods. Therefore, it is worth understanding this concept, regardless of what you are investing in."
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