Whenever we hear the word " stock market" the impression is always huge money and playground for the rich guys and gals. But in reality, it's not. The stock market is just like a regular market where in you shop for companies or brand companies instead of items. The moment you bought shares or stocks from a publicly listed company you will become a part owner of that company. As a part owner you are entitled to receive dividends or parts of the company profits being shared to commom stocl or share holders. Dividends deoends on the decision of the members of the company board. If they have a huge profit, they can share it through dividends or they could stop it as well. You also earn through capital appreciation. For example you bought a share of McDonads for $5 per share and after a year the share cost reached $12 you definitely earned $7per share depending on the number of units you purchased per normal board lot.
I will share more in my next post.
Ciao
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