![]() ![]() Also, it’s important to note it’s nearly impossible to game the market - so it’s not worth trying for the lay investor. ![]() ![]() Because a stock isn’t diversified, that can mean disaster for you (although you can easily reduce your risk by picking bigger, solid companies). If a company does poorly, so does your stock. This means that you can get it at any time by selling your stock. If your stock is good and the company is flourishing, you can really make a lot of money. For example, if Company A just released an amazing new product that is selling like crazy, the prices for Company A stocks are going to rise.Īlternately, if Company A experiences falling sales, their stocks are likely going to fall as well. The stock price fluctuates depending on how the company is doing. When you own a stock, you own part of the company that stock came from.įor that reason, stocks are also referred to as “equity,” since you own a small part of the company. Ready to ditch debt, save money, and build real wealth? Download our FREE Ultimate Guide to Personal Finance. ![]()
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December 2022
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