Market MakeHer Podcast

3. What is a Stock (and how does a stock make money)?

6 snips
Jun 12, 2023
Discover the essence of stocks as fractional ownership in companies and learn why investors eagerly jump in. Explore how companies go public through IPOs and the role of stock exchanges. Dive into the dynamics of revenue, profit margins, and the distinction between growth and income stocks. Unravel the significance of earnings reports and how to gauge stock performance. Plus, get insights on selecting stocks and future investment strategies to build a strong portfolio!
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INSIGHT

Stocks Represent Company Ownership

  • A stock is a fractional ownership share of a company that lets you participate in its profits and growth.
  • When the company makes money, your ownership can increase in value through capital appreciation.
ADVICE

Put Your Money To Work

  • Buy stocks to put your money to work and participate in capital appreciation as companies grow.
  • Choose stocks when you want your funds to increase as the company's revenue and value rise.
INSIGHT

Going Public Brings Transparency

  • Going public (IPO) makes a company tradable on secondary markets and creates shareholder responsibilities.
  • Public companies must follow SEC regulations and provide transparency to investors.
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