Stocks let you own a piece of a company’s future. They’re available for a wide variety of industries—so you can tap into your knowledge of specific businesses, or help you to diversify your portfolio. Own a piece of a company’s future
While stocks fluctuate, growth may help you keep ahead of inflation. Potentially generate income with dividends.
Flexibility for long- and short-term investing strategies.
As a stock investor, there are two basic ways you can make money.
Capital Gains – The first way stock investors make money is through growth or capital gains. This means that if the stock price goes up, your shares are worth more. So if you sell them for more than you paid for them, you keep the difference, which is referred to as a capital gain. The price of a stock goes up and down, so if you sell your shares for less than what you paid for them, then the result would be a capital loss.
Dividends – The second is by receiving a dividend from the company. Dividends are simply a little piece of the company’s profits, typically paid quarterly. Companies don’t have to pay dividends to their shareholders, but many times they do. It’s important to note that even companies that have historically paid a dividend can stop at any time.With more than 65,000 stocks available around the world, it can be difficult to choose what’s right for you. Diversification – don’t put all your eggs in one basket. Diversification is a strategy to help make sure your investments aren’t concentrated in a certain type or area. Your financial advisor can help you decide.