The Smart Investor

[Small Time Tina]

Stocks

What they are

Stock represents ownership of a corporation. Stockholders own a share of the company and are entitled to a share of the profits as well as a vote in how the company is run.
How earnings are made

Company profits may be divided among shareholders in the form of dividends. Dividends are usually paid quarterly. Larger profits can be made through an increase in the value of the stock on the open market.
Advantages

If the market value goes up, the gain can be considerable.
Money is easily accessible.
Disadvantages

If market value goes down, the loss can be considerable.
Selecting and managing stock often requires study and the help of a good brokerage firm.