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S E32: The Financial Sector - Bonds, Stocks and Shares - should you or shouldn't you?

Think Like An Economist

CHAPTER

What Are Stocks All About?

The stock market is just a big second hand market. Most of the stocks you see traded are stocks people already own. It's not raising money for the company, it's just stocks changing hands. If you buy shares in fiser, you become a partial owner of fiser. Well, if fiser makes money, so do you. At the end of the year, fiser will tally out its profits and pay some portion to you. These are called dividends. And it'll take the rest and re invest it in creating new vaccines. But that doesn't cost you money, because hopefully that re investment will still generate a return for you.

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