i get the part about the dividents and all that but what if i bought a stock at 3.80 and it went up to 3.90 ddoes the company send me 10 cents for every stock i own how does this work?
2006-09-10 18:42:09 · 11 answers · asked by antelias 2 in Business & Finance ➔ Investing
i know i have to sell it but i was told(by my banker) that i get dividents by the company
2006-09-10 18:46:44 · update #1
like for example i bought the stock and i kept it for a year does that mean i dont get any money
2006-09-10 18:47:55 · update #2
Golden rule: buy low, sell high
2006-09-10 19:17:51 · answer #1 · answered by Ed 3 · 0⤊ 1⤋
When the stock goes up from 3.80 to 3.90, that's the market value increasing. Your stock is worth more than when you bought it, but the company does not send you that 10 cents. Keep in mind that the market value can also decrease. The idea is to buy the stock at a lower price..say, the 3.80, and sell it when the price is significantly higher - like 7.50 (or whatever). It would be a good idea to call or go in and talk to your financial advisor that you purchased the stock from (or if you don't have someone like that, ask at your bank- they should have an investment department). Ask them all the questions you want- that's why they are there. And don't feel silly asking them- I work in the industry and a lot of people don't understand how it all works.
2006-09-10 18:49:19 · answer #2 · answered by matty.. 4 · 1⤊ 0⤋
A market is where people go to buy and sell items. A stock market is where people go to buy and sell shares of stock. Stock market shares and the rules about them are what we use to represent ownership in a publicly traded company. You buy and sell stocks through a brokerage house like Merrill Lynch. You make money from buying and selling stocks by being a lucky person with some basic statistics knowledge. It's very similar to playing poker, except the people you are playing against are the best players in the world and they have tools to give them vast amounts of information and programs that trade for them based on an analysis.
2016-03-27 06:37:30 · answer #3 · answered by Maria 4 · 0⤊ 0⤋
When you buy stock in a company you are essentially betting on the future of the company with your money. You buy a share of "Company A" and then you wait to see if the value of the share rises. Sometimes there is no steady rise or fall-- the value could stay stagnant, and sometimes it will skyrocket one week and plummet the next. If you can buy a share "Company A" for a good deal (usually at a pretty reasonable price) and that share gains value steadily over time, then you have probably invested wisely. If this is the case, you may choose to keep your share and wait to see if it will gain value or you may choose to sell your share and "collect". If your share of "Company A's" value declines, then it would be wise to just cut your losses. This is how you make money off stocks.
2006-09-10 18:56:43 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It depends on what kind of return % you want and how quickly you want that return. Day Traders buy low and sell high and don't care about dividends. If you prefer a dividend company, then after you receive your $$$ from the dividend, you can buy more of that company. When you company dips down in price and you want to keep it, buy more and add to your "position".
http://pennypimps.com/ is a great site for Penny Stock Picks. You can also submit your own Pick!
Also, there are many message boards on Yahoo for each individual company you are interested in. There are other message boards on the internet that may help with your investing decisions...like...http://www.investorshub.com/boards/default.asp
2006-09-11 03:25:39 · answer #5 · answered by dealerschool2006 3 · 0⤊ 0⤋
dividends you get from the company when they are paid.
The other part is stock appreciation (up) or depreciation (down)
you make or lose money depending on the stock price compared to when you bought it when you sell (minus commision of course)
2006-09-10 18:45:58 · answer #6 · answered by Intersect 4 · 0⤊ 0⤋
As long as you don't close out your position, you have a paper gain or loss.
When you close out your position (e.g. selling shares your bought earlier), then you will have made a real profit or loss.
Let's make money!
Good luck
Marc
2006-09-11 06:03:43 · answer #7 · answered by Marc H. Mayor 2 · 0⤊ 0⤋
No, you have to sell the stock to recieve the capital gain.
2006-09-10 18:44:40 · answer #8 · answered by michinoku2001 7 · 0⤊ 0⤋
you kinda have got it,but you would only get the 10 cents if you sold the shares,
2006-09-10 18:46:32 · answer #9 · answered by Anonymous · 0⤊ 0⤋
buy low and sell high or sell high and buy low
i suggest u go to the bookstore and buy a book
trading for dummies ex.
2006-09-10 18:43:07 · answer #10 · answered by bigmahi22 2 · 0⤊ 1⤋