How do shareholders of listed companies make money?

When we first enter the stock market, we will be curious about some things in the stock market, such as how shareholders of listed companies make money. Do you know how shareholders of listed companies make money? Let's get to know each other.

There are three ways for major shareholders of listed companies to make money: dividends, cash and related transactions. Among them, cash is divided into cash reduction and cash pledge.

1 Dividends: Dividends mainly depend on the profits and cash flows of listed companies in the current year, and listed companies with good returns basically pay dividends every year.

2 Cash-out: Cash-out can be divided into reduced cash-out and pledged cash-out. Reducing cash means selling directly; Pledge cash is to use stocks as collateral to finance, such as issuing bonds that can be redeemed. However, some major shareholders engage in equity pledge, and they must get real money first. As for whether the stock is pledged at maturity, it depends on the situation.

3 related party transactions: that is, companies under the name of major shareholders have transactions with listed companies to realize the transfer of benefits.