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.
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