Basic Investing Advice

When you own a stock, you own a part of a company. Companies sell these pieces of ownership, known as shares, to raise money to finance their business. If the business does well, your stock generally does well. If the business does poorly, you can lose some or all of the money you paid for the shares. There are two ways to earn money when you invest in stocks: • Price increase – when the price of the stock rises. • Paying dividends – when the company shares its profits with investors, anywhere from one to four times a year.

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