How do I make money with stocks?

1 Answers

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  +1 Votes 2  1

  Pinyo on Sep 04, 2011

  There are two ways to make money with stocks:

  1. Dividends – Some companies choose to divide its profit among its shareholders in cash. These cash payouts are called dividends. If you own stock in a company, you may be entitled to receive dividends (usually distributed quarterly). The cash value of your dividend payout depends on how much the company chooses to pay per share of stock, multiplied by the number of shares you own.
  2. Stock appreciation – You can also make money by buying shares and then selling them after its price has gone up. The money you make when you sell a stock is called a capital gain.