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WHAT ARE STOCKS

What Are Stocks?

Stocks are small parts of ownership in a company. When you buy a stock, you become a small owner of that company.

How Do Stocks Make Money?

You can make money from stocks when the value of the stock increases.

Some companies also pay shareholders dividends. A dividend is money paid to shareholders from the company's profit.

Simple Example

Imagine you buy shares worth ₦50,000. If the value increases to ₦60,000, your investment has gained ₦10,000.

Can You Lose Money?

Yes. Stock prices can also go down. If the value falls, you can lose part of your investment if you sell at a lower price.

Stocks can help you grow your money, but they also come with risk. 

Muktar Hassan

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