Stock exchange

Have you considered investing in the stock market, but don’t even know where to start? Are you interested in the stock market, but do you think it’s complicated and inaccessible?

First of all, it should be noted that the income of the Stock Exchange is generated mainly in two ways: by buying shares in a company and selling them when their price rises (which we call capital gains), or through dividends, which are the profits that companies distribute among their shareholders.

Secondly, although in the long term the stock market may be a very profitable investment, it must be well known and operated with criteria; we must not forget that it is an investment in equities, either upwards or downwards. It is not possible to know in advance the profitability of a share, so it is advisable to invest only the amount that we will not need in the short term, and that you set your limits. It may happen that, when you sell, you get a lower price for your shares than you paid for them.

Finally, it should be borne in mind that the profits obtained on the stock exchange are taxable. If you keep your investment for more than one year, the profit will not be subject to withholding and will be recorded at 21%. If, on the other hand, these profits have been generated in less than a year, they will be added to the income from work and will be taxed at the corresponding rate. In addition, after the first 1,500 euros, dividends will also be taxed at 21%. This taxation is for the Common Territory, since the Haciendas Forales have another percentage of taxation.

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