Stocks: Business Ownership Minus the Hard Work
- Team KAS
- Jul 1, 2023
- 3 min read
Updated: Jul 3, 2023
Ever wish you could own one of your favorite companies? Turn your dream into reality with stocks!
Whether you've seen the movies or not, almost everyone has heard of Wall Street. This road was made famous by an institution which has been around for centuries: The New York Stock Exchange. However Michael Douglas devotees and Shia LeBouf fans alike may have a harder time explaining exactly what goes into trading stocks and how you can make your investment dollar grow doing so.
What is Stock?
A stock is a type of security (an investment instrument) that represents ownership in a company. When you buy a stock, you are essentially buying a small piece of that company. Stocks are traded on stock exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ.
The price of a stock is determined by supply and demand. When more people want to buy a stock than sell it, the price goes up. When more people want to sell a stock than buy it, the price goes down.
The price of a stock can fluctuate wildly, depending on a variety of factors, such as the company's financial performance, economic conditions, and how investors are feeling about the company at any given time. sentiment.
Did You Know: The New York Stock Exchange, founded in 1792, has a strict dress code. No one is allowed on the trading floor unless they are wearing a suit and tie.
Pros
When utilized as part of a responsible investment plan, owning, buying, and selling stock can be a lucrative activity over the long run. Some of the benefits include:
Potential for high returns: Over the long term, stocks have historically outperformed other types of investments, such as bonds and cash.
Grow your wealth: If you invest in stocks and the company does well, the value of your shares will go up. This means that you can sell your shares for a profit in the future.
Participate in the growth of a company: When you own shares in a company, you are entitled to a share of the company's profits. This means that you can benefit from the company's success.
How involved are you in stock trading?
0%I'm not interested in trading stock
0%I'm doing research but I haven't bought anything yet
0%I own some mutual funds as part of my retirement savings
0%I have an app where I dabble in buying and selling
Cons
The idea of benefiting from a company's growth without having to be involved in their day-to-day operations is a compelling on, but there are some downsides:
Risk of losing money: The price of stocks can go down as well as up. This means that you could lose money if you sell your shares when the price is low.
Volatility of the stock market: The stock market can be volatile, meaning that prices can fluctuate wildly in a short period of time. This can make it difficult to time the market and buy and sell stocks at the right times.
The need for research: Before you invest in any stock, it is important to do your research and understand the company you are investing in. This includes understanding the company's financial performance, its competitive landscape, and its future prospects.
How We Can Help
Investing in stocks can be a great way to grow your wealth over the long term. However, it is important to remember that stocks are a risky investment and you could lose money. If you are considering investing in stocks, it is important to do your research and understand the risks involved.
If you've made investments in the past and haven't reported them, now is the time! Don't wait for the IRS to catch up to you. Click one of the buttons below to get started. We'll file or amend your past returns and make sure you receive the benefit of your investing.
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