What are stocks?
A stock is a certificate of ownership of a company. When you buy a stock, you buy a bit of ownership of the company for yourself. The more stocks you buy the more ownership you get of the company.
What moves the prices of stocks?
There are many things that cause a movement in the stock price. For example:
- If the company were performing well, investors would like to have the stocks of that company. Because being an owner you can get a share of the profit that the company makes.
- If someone is interest in buying that company the stock price will rise.
- If investors think that this company has a bright future the price will go higher and so does the value of the company.
- Of course price can also go down if investor thinks that the company is performing bad and keep on performing bad.
How can I make money with stocks?
With stocks you can make money in three ways.
You can make money when in trading the stock goes up in value, make money when the company pays you dividend (profit of the company) and when the stocks go down in value. If you don’t have a big budget and if you are in for a short-term profit then we would recommend you to invest in cfd’s instead of stocks.
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