April 18, 2008, Newsletter Issue #114: Investing in Stocks

Tip of the Week

Benefit from a company's growth by investing in the company's stock. A stock is essentially a portion of a company. When a company wants to raise money, one option for them is to offer part ownership in the company in the form of stocks. These stocks can be bought through the company directly or through a stock broker. When you own a stock, you get the ability to vote for company officers and policies and attend shareholder meetings. You will get an annual report that gives you information about how the company is doing. If many people believe the company will do well in the future, they will want to buy into the stock and your stock value will go up. If more people believe the company will do poorly, they will sell their shares and your stock value will go down.

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