Investing Stocks

Stocks are an investment vehicle that allow you to purchase small pieces of ownership in a company. By owning stocks, you are entitled to a part of the profits from the company and also have voting rights. As a stock owner, you may become wealthy if the company does well and its stock price increases. For example, if you purchase one share of Amazon stock at $1,000, and the price increases to $1,500, then you’ve made a $500 profit. An analogy to help you understand the concept of investing stocks is to think of it as a box of chocolates. You don’t know what you’re going to get, but you’re hoping that it will be something sweet with a high return on investment. Fun Fact: The world’s first stock exchange was established in 1602 in Amsterdam.