I kind of know about buying and selling, but what I want to know is: Do you get paid money while you own stock? in other words, does the company share its profits with you because you are a shareholder?
2007-01-27 05:52:55 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
As a shareholder you are a part owner of the business you have invested in, thus you have certain rights, voting for directors etc. The Directors act as the keepers of the business for the shareholder and act in thier best interests.
With the above in mind as an owner of the business you are entitled to a share of the profit, in relation to the shreholding you have.
However it is the directors decision to whether a dividend should be paid in a particular financial year. So it depends on the success of the business on whether a dividend is paid. For those companys listed on the stock market a half year and full year dividend are usually made.
To be more or less assured of a dividend invest in a blue chip company. If trhe business is performing badly for a number of years and no dividend is paid then the shareholders can vote the directors out if they have the capacity to group together and make a collective decision.
2007-01-27 06:07:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You get paid depends if the company wants to pay you, If it pays dividend, it will declare a dividend of the amount of their choice. If it doesn't pay dividends, you can get the money buy selling your shares, and you will get a profit only if the value of your shares go up. So you make a lost if you sell it when value has dropped from what you initially paid for the share.
2007-01-27 07:34:31 · answer #2 · answered by cuz 2 · 0⤊ 0⤋
If it is a dividend paying stock, then you will get "paid" a dividend typically each quarter. Dividends range from a few cents to a couple dollars per share, depending on the stock.
Not all stocks pay dividends though. Check out investopedia.com for more resources on investing.
2007-01-27 06:06:54 · answer #3 · answered by xaow20 1 · 0⤊ 0⤋
The company pays you share of Profit twice a year that is called dividends.
I would suggest you to check the website below to learn more on how to select the best stocks to get more profit
Hope it helps
http://money-review-site.com/shares.html
2007-01-28 08:55:39 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They share their profits every year or every quarter or never.
These payments are called dividends.
2007-01-27 06:04:27 · answer #5 · answered by Anonymous · 1⤊ 1⤋