How Do Stocks Work in 2022? Here’s What You Need To Know

A stock represents a means for companies to raise capital outside of a regular revenue stream. When companies sell shares of stock, they sell a small piece of ownership for interested investors to buy.

Stocks and IPOs

Companies start as privately held and are not listed on any stock exchange. Its leaders must decide to start selling shares to the general public through an initial public offering (IPO).

What Determines Stock Prices?

- Earnings Trends - Economic Factors - Market Conditions - Political Concerns

How Do You Make Money From Stocks?

- Price Appreciation - Growth Stocks - Day Trading - Dividends

How To Invest in Stocks

- Direct Ownership - Indirect Ownership - Mutual Funds - ETFs - Making the Investment

What To Look For When Picking Out Stocks

- Price-to-earnings (P/E) Ratio - Market Capitalization - Past Performance

Are Stocks a Good Investment?

Stocks offer incredible investing potential and can lead to massive profits if done correctly. While admittedly rare, individuals have achieved their financial goals from investing in the stock market.

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