How to profit from stocks

Compared to other investments, stocks are riskier, but they also have a bigger potential for payoff. There are two basic ways stock investors make money:

1. if a stock's price increases while you own it, and you sell it at a higher price than you originally paid.
2. the way of dividends. Regular payments to shareholders are known as dividends. Even while not all equities pay dividends, those that do usually do so once every three months.