When you buy a stock, you become a part owner in a company. You may be able to make money if the stock price goes up, but you could also lose money if the stock price falls. There are other ways to make money from stocks, too. You can sell a stock you own before […]
What Does It Mean To Sell Stocks Short
When you sell a stock short, you are borrowing shares of the stock you hope to sell from somebody else, typically your broker, and then selling the stock. You hope the price falls so you can buy it back at a lower price and give the shares back to your broker. The key difference between […]
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How To Borrow Stocks
When you borrow stocks, you’re essentially borrowing someone else’s shares and hoping the stock price goes up so you can sell the stock at a higher price and repay the loan with the profits. It’s a high-risk investment strategy, but it can also be a way to make a lot of money if you’re successful. […]
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16 Min
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How Does Stocks And Shares Work
When you buy stocks and shares, you are actually buying a tiny piece of a company. You become a shareholder in that company, and own a part of it. A company can issue different types of shares: common, preferred, and convertible preferred. Common shares are the most common type, and give shareholders the right to […]
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20 Min
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When Do You Owe Money On Stocks
When do you owe money on stocks? This is a question that a lot of people have, and the answer is that it depends on the type of stock that you own. There are two main types of stocks: common and preferred. With common stocks, you generally do not owe any money until you sell […]
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14 Min
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How Is Money Made From Stocks
In order to make money from stocks, an individual must first purchase shares of a publicly traded company. Shares of stock represent a portion of ownership in a company and give the owner the right to vote on important issues, such as the election of directors, and to receive dividends, which are payments made by […]
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16 Min
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How Trading Stocks Work
When you buy stocks, you are buying a tiny piece of a company. You become a shareholder, and as the company grows and makes money, so do you. But buying stocks is more than just buying a piece of a company. It’s also a chance to make money if the stock price goes up. And […]
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21 Min
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When Did Shorting Stocks Start
Shorting stocks is a process where an investor, typically through a stockbroker, sells a security they do not own and hope to buy the same security back at a lower price so they can have a profit. The practice of shorting stocks is said to have originated in the early 18th century on the London […]
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17 Min
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Why Are Options Better Than Stocks
There are a number of reasons why options are better than stocks. For one, options offer greater leverage than stocks. With a stock, you only make money if the stock price goes up. With an option, you can make money whether the stock price goes up, down, or stays the same. Options also offer more […]
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17 Min
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How Do Stocks Make Money
When you buy a stock, you are buying a tiny piece of a company. Over time, as the company makes money, its stock price goes up. The company can then use that money to grow, hire more people, and make more money. When you sell your stock, you make a profit. But how does this […]
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25 Min
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