How Stocks work??

Question

Please tell me what you know about stocks and how they are profitable. Thank You.

Answer 1

You won't get meaningful answers here.  Start by reading "Stock Investing For Dummies."

Answer 2

Stocks represent shares in a company. If you own 100 shares of a company that has 1,000,000 shares, then you own 0.01% of the company. The price of a share depends primarily on the success of the company.

If the company is doing well, the price goes higher because the company is more valuable and more people want to own shares. If you buy shares of a company and the company does well and the price of a share goes higher, you can sell your shares at the higher price and make a profit. If you buy shares and the company runs into trouble, then the value of the company and the price of the shares will drop. If you sell at a lower price than you bought the shares at, you have lost money.

For example, suppose the current price of a share of the XYZ company is $10 and you buy 1000 shares for $10,000. After 5 years, the company has done well and the price of a share is now $22. You need cash so you decide to sell your 1000 shares for a total of $22,000. You have made a profit over 5 years of $12,000.

Answer 3

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GOOD LUCK