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How do people actually get money from the stock market? |
Like if you buy an share of an company for X amount of money (the average) how do you actually get money from the investment? When you sell it? But if you sell it and the current stock is only going for X money per share around what you paid for it how do you make more than say the say $10 the stock went up? (say $10 up after you bout it) You only make money if the stock goes up when you sell it or the stock gives you dividends. You sell shares for more than you paid for them usually. There are other ways but it gets complicated fast. You buy the stock and hope that it rises in the future, you can also get dividends from the stock if it's a stock that pays one. If you buy a stock for $10 per share, and 5 years later it's still $10, then you haven't made anything if you sell it. But if you bought Berkshire Hathaway in the 1960's it was selling for about $10 per share. Now, it's selling for over $100,000 per share. Nice return, eh? You receive money from selling stock; however, you have to be careful about selling too quickly and risking capital gains tax. It's best to stay in for the long haul. You get money from the stock market when someone buys your stock back from you. Normally this isn't a face-to-face sale like retail, it's more like selling a house through a real estate agent. Instead of an agent managing the sale there is a broker. And instead of MLS listings, offers, and counteroffers, there are exchanges offering stocks at certain prices, which move with supply and demand, so it's much faster and efficient. three ways of making money, |
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