Category Archives: Business

Accounting, Investing, Management, and Marketing Lessons! This is just a sample. Our Business lessons combine reading, videos, infographics, and quizzes to ensure concept mastery.

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Ownership and Dividends

Owning a share in a company means that you are an integral part of the puzzle that helps the company tick. Typically, investors choose to own a stock for one of two profit driven reasons: the dividends they will receive from the company, or the hope that the stock price will increase and they will be able to sell it for a higher price than they purchased it at.

Issuance of Stocks and Paying Dividends

Big corporations are very powerful entities that can possess more capital than some countries in the world. However, every company begins as a small start-up business. Once a private company grows large enough, they can become public, meaning they sell stocks to the public to finance future endeavors. After selling stocks to the public, the company will have to pay dividends to those who have chosen to invest in them.

Margin Trading and Market Timing – High Risk Investing

Margin trading is when you borrow money to invest. This increases the risk because now your returns need to not just make a profit, but more of a profit than you pay in interest. Market timing is also risky – instead of relying on fundamental business data, it means trying to pick the perfect hour, minute, or second to “beat” other traders who are trying to do the same thing.