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How do shares pay you as a share holder?

In: Investing and Financial Markets, Stocks, BP Oil Spill [Edit categories]

Answer:

Shares are essentially a stake in ownership of a firm offering stock as a method of raising capital. Owning stock can sometimes allow you to receive dividends, a certain share of net profit from an accounting period, but most people make short term monetary gains by trading stocks at a higher value than when they bought it. I would not recommend investing in stocks without a financial consultant to explain things in more detail and someone who can create a portfolio that fits you specifically instead of trying to jump on hot stocks that anyone can do but many tend to fail at.

First answer by ID1220383998. Last edit by ID1220383998. Question popularity: 1 [recommend question].

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Relevant answers:

What happens to share holders shares in a takeover?
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If shares get down what effects it on share holders?
It reduces their net worth. Example time: you hold 10,000 shares of Walmart. It closed at $49.97 on Friday, so you have a net worth, on paper, of $499,700 just in this one security. Every penny...
What are different of stock holder and share holder?
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