Finally, stocks can reward you by share buybacks

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Stocks are shares of publicly listed companies. When you invest in stocks, you benefit from three things. First, you benefit from capital gains. This is when the value of the stock that you own moves up. For example, when Facebook went public in 2013, its stock was priced at $38 a share. In October 2018, the stock was at $150. Therefore, if you bought 10 shares when it went public, you would have spent $380.


In October 2018, the value of your shareholding would be worth $1500. Second, they mayotte business email list derive their income from the dividends. When a company generates additional cash flow, instead of putting it in the balance sheet, it can return the funds to investors. For example, if you own 1000 shares of a company like Apple. If the company pays a dividend of $1 per share, then you will receive a payout of $1,000 from your investment.


Finally, stocks can reward you by share buybacks. This is a situation where a company decides to buy back its stock instead of paying a dividend. As an investor, you benefit by a reduced share count which makes your shareholding more valuable. There are four types of stocks investments: Value stocks: these are companies whose value has been ignored by the market. A company can be ignored because of the sector it is in.