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02.04 What is Stock Anyway Connor Hutton - Connor Hutton...

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Connor Hutton02.04 What is Stock Anyway1.Stocksa. Stocks is when you invest your money in a certain company and buy a particular amount ofshares of the company.Depending on how well the company is doing and how many shares youhave in the company, the amount of money you receive (dividend) will vary.This is anaggressive investment, but can be worth it in the long run if the company does well.b. The expected benefits of this type of investment are that you will receive a dividend, or profitpayout, from the company.This money is some of the earnings that they have made, but seeingthat you own a portion of the company, you are entitled to a portion of the earnings.Thispotentially earns money because if a lot of people are interested in the company and it makes alot of money, you will receive more money than with a company doing poorly or just startingout.c. There can be a high risk that you will lose money when investing in stocks.If the companygoes bankrupt, goes out of business, is doing poorly, or not that many people are interested in it,you could lose the money that you initially invested into the company.There could also be achance that you invest money in the company and are not guaranteed a dividend, whether thecompany is doing well or not.This is why this type of investment is such a high risk.

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Term
Fall
Professor
Leach
Tags
Connor Hutton

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