Yusra3
VIP Contributor
If you're interested in investing in the stock market, there are a few things you should know first.
First, it's important to know what stocks are. A stock is a share of ownership in a company that can be bought and sold on the open market. Each share represents a portion of ownership in a company; if you own 100 shares of ABC Corp., then you own 1% of the company.
Second, it's important to understand the different types of stocks and how they work. There are stocks with dividends, which pay out cash to shareholders; there are stocks with capital gains, which increase in value over time; and there are bonds (which are simply loans to companies), which pay interest.
Third, it's important to know how much money you can make from investing in stocks and where that money will go if it's not reinvested into the stock market itself!
First, it's important to know what stocks are. A stock is a share of ownership in a company that can be bought and sold on the open market. Each share represents a portion of ownership in a company; if you own 100 shares of ABC Corp., then you own 1% of the company.
Second, it's important to understand the different types of stocks and how they work. There are stocks with dividends, which pay out cash to shareholders; there are stocks with capital gains, which increase in value over time; and there are bonds (which are simply loans to companies), which pay interest.
Third, it's important to know how much money you can make from investing in stocks and where that money will go if it's not reinvested into the stock market itself!
