WEBVTT

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through stocks also known as shares or

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equities you basically own a piece of a

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company let's assume company a has a

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total of 1 million shares if you own one

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share you basically own point zero zero

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zero one percent of that company if you

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own 10,000 shares you own one percent

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and so on by owning stocks you can make

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money in two ways if the company was

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profitable last year those who run it

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can choose to divide a certain

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percentage of those profits among all

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owners someone who for example owns one

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percent of a company receives one

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percent of that money these rewards are

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called dividends if the value of the

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company goes up so does the value of

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each share you own maybe because the

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assets of your company for example real

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estate such as physical stores went up

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perhaps because investors are more

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optimistic and bid more for its shares

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maybe for other reasons the stock you

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paid $1 for last year might be worth $2

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today so you double your money if you

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were to sell now however you can also

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lose money with stocks businesses

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sometimes even go bankrupt so you may

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very well occasionally lose everything

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you invested