- Owning part of the company does not expose you to the risks of bankruptcy or debt. You only lose the money you invested in the company when you bought the stock.
- Although owning shares in a company is risky, an appreciation in value increases your wealth. In addition, certain stocks pay dividends, which are a part of the profits.
- Investing in stocks is possible by working with a broker. Brokers are specially trained individuals with access to the stock market. Placing an order to buy or sell stock is typically executed by brokers who charge a fee to execute your trade.
- One of the most important factors on stock price is earnings. Earnings are typically reported every three months to show how much money the company makes. Without strong earnings, investors lose confidence in the financial health of the company and pull money away from failing businesses and into promising endeavors.
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