Choices

Stocks

• Stocks are shares of ownership of the company in which you are investing
• You make money on stocks when they grow in value and the company pays dividends.
• Stocks can LOSE money too...

 

Why some companies are more profitable than others.

• The company is better than its competitors
• Other investors recognize that it's a good company and want to buy its stock
• The company makes enough money to pay dividends on stock or pay interest on bonds
• The people who run the business are honest, hardworking and talented

You can lose money if...

• The company’s competitors are better than the company
• People don’t buy the company’s products
• The company’s officers don’t manage the company well
• Other people don’t want to buy the company’s stock
• The company’s officers are dishonest

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