Monday, August 3, 2009
Stock is arguably one of the best ways to make money. A stock is a piece of ownership in a company. The idea is to get a piece of stock while it is cheap and sell it later while it is more expensive. Or, to get a piece of stock while it is cheap and hold on to it forever, collecting the income it gives off; some stocks give off income known as dividends. Stock can be the fastest way to create or lose wealth, as its price is solely determined by what people think it should cost. When the economy is good, people think stock should be worth a lot of money, so it is. When the economy is bad, people are scared of stock, so the price is very low. The idea is to go against the crowd and buy when everyone else is scared so that you are buying at cheap prices.