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Stocks And How They Work

How Do Stocks, Work?

In short, stocks represent ownership of a company. Whoever holds stock can receive profits from the company in the form of dividends, vote on issues relating to company decisions, and sell their ownership to someone else.

Generally, stocks are more volatile investment tools since their current price is tied to how people perceive the value of the stock today. Anything can happen in the future that could radically change how much the business is worth, for better or for worse.

Because of this, many strategies around stocks hope to capitalize on increases of value of the stock itself. Although some still rely on established companies to gradually pay out profits in the form of dividends.

For more information on stocks, check out this handy infographic below!


How Stocks Work Infographic

If you're interested in the stock market, or would like to know how stocks can help you pursue your financial goals, contact me at 203-956-0289. You can also send me an e-mail to wward@1stallied.com. Hope to hear from you soon!

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.


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