When an investor buys a stock, he/she becomes a partial owner of a company listed in the stock market. He/she has the right to vote on matters of corporate policy and board elections as well as share the success or failure of the business.
There is not withholding tax on dividend for residents or foreigners (living in Cambodia for a specific period of time in Cambodia and are acknowledged by the law to receive this tax incentive), 50% tax reduction for non-residents (foreigners living outside Cambodia), no tax on capital gains, and no stamp duty tax levied on trading.
Some listed companies become very successful, and market prices of their stock surge higher. Therefore, the owner can sell those stocks at a good profit. Also, stock investments usually provide higher return compared to other investment options.
Each stock entitles the owners to some amount of dividend the corporation decides to pay.
Stock is a good way to diversify your investment portfolio.
Stocks are traded in small pieces which are affordable to anyone. They can be sold in the market and converted into cash quickly.
