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Why should I buy stocks?
Why should I buy stocks?
Yanmo avatar
Written by Yanmo
Updated over a week ago

People buy stocks (shares) for two major reasons. First, they expect the share price to go up. This is known as capital appreciation. Meaning, if they buy Apple shares at $209, and in 6 months, if the share price goes up to $250, they have made $41.  

Second, people buy shares because they expect to get some income from the company, on a periodic basis.  This is known as a dividend. Companies pay dividends from the profit they make within a period, or when they sell an asset. 

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