Million Bazillion How do stocks make money?
Oct 21, 2025
Two reporters visit the New York Stock Exchange to figure out how stocks make money. They explore share price gains and dividends as the main paths to profit. The episode contrasts risky single-stock chasing with low-risk, diversified index investing. A real eight-week experiment shows the different outcomes of those strategies.
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What The Stock Market Actually Is
- The stock market is where companies sell pieces of themselves called shares or stocks.
- People buy stocks because they expect the company will make more money in the future.
Two Ways Stocks Make Money
- Investors make money two main ways: share appreciation and dividends.
- Share appreciation is selling for more than you paid and dividends are company profits paid to shareholders.
Match Strategy To Your Risk Tolerance
- Decide how much risk you can tolerate before choosing an investment strategy.
- Your risk tolerance should shape whether you take big swings or pick safer, diversified options.
