Stock investing is very common especially in developed countries where there are a large number of companies. Investors buy stock from companies and sometimes make a portfolio of it. Portfolio means buying stock from different companies to reduce the risk. Whenever you buy stock you make either profit or loss over it. People seem sometimes confused and they actually don’t know what happens to the stock and how they actually make money out of it.So to reduce this problem you can read our post http://www.studentff.com/what-you-need-and-want-to-know-about-stock-analysis-software/ .
Two basic ways to make money from buying Common Stock:
People make money in two ways when they buy the common stock.
1.When Share Price Increases:
The first to make money is the increase in share price increases. Now you will be eager to know that how the share price of the stock increases. Share price increases in the long run when company goes for expansion of the current business and makes higher profits. In some other cases a company may go for repurchase of its shares/stock (complete phenomena is discusses below). When repurchase of shares occur then the value of existing shares increase and each share represents greater ownership as a %age of total Equity.…