top of page
What Are Stocks?
Stocks are shares of ownership in a company.
When you buy a stock, you own a small piece of that business.
If the company grows and becomes more valuable, your stock may rise in price.
Some stocks also pay dividends, which are cash payments to shareholders.
How stock return is calculated:
Stock Return (%) = ((Selling Price - Buying Price) + Dividends) / Buying Price × 100
Real-Life Stock Example
You buy a stock at $50.
Later, it rises to $60, and you receive $2 in dividends.
Return = ((60 - 50) + 2) / 50 × 100 = 24%
Why stocks are important
-
Can grow wealth over time
-
Give ownership in a business
-
May provide dividend income
-
Widely used for long-term investing
bottom of page