One school of thought is this: If you have stocks that aren't overvalued when you buy them, downturns in their value give you an opportunity to
purchase more stock at a cheaper price.
If you're looking to expand your product range, you're likely to need capital to cover the cost of purchasing more stock
It might be worth it to stick around at your current job for a few extra days or weeks so that you're eligible to
purchase more stock.
While this reduces the break - even point it also increases risk if the stock price continues to drop; this is not to mention that they are coughing up more cash to
purchase more stock.
If
you purchased more stock in the same company with your dividends you would not only get the benefit of a 4 % compounded interest rate, you'd also get any gains due to the increase in stock price.
If everything can remain relatively the same, it will be nice knowing how much I am working hard to gain money, which mean more money more stocks, if everything can just remain the same, I might be able to
purchase more stocks.
The second choice is to immediately take those funds and
purchase more stock.
One is to spend it; the other is to immediately take those funds and
purchase more stock.
The first is to take the cash and spend it, the second is to immediately take those funds and
purchase more stock.
Or do you wait until you have enough cash saved up from dividends to
purchase more stocks?
However, stock purchases have the option of being purchased on margin which means you can
purchase more stock than you have funds immediately available.
And my dividend earnings are automatically being reinvested to
purchase more stocks.
It's good to have some free time, but at this time, I really need money as I want to
purchase more stocks or units — whatever they are!
The second is to immediately take those funds and
purchase more stock.