Individuals and companies buy stocks as an investment, not just because stocks may go up, but because stocks pay a dividend every year, which is in essence the interest on the money they (or the person they bought the stock off) gave the company. If a company does well they may pay a high dividend, if they do badly you may get no dividend. So it's like a bank account but with a higher risk reward (remember banks/coops/societies only make money by lending what they receive for interest, i.e making the money work, same with companies, investing, building, making the money work).
Sometimes companies will pay no dividend even when they do well - I'm not sure if Ryan Air has ever paid a dividend out but instead have put all their profit into expanding the business.
*MySmiley*
Robert Graves "There is no money in poetry, but then there is no poetry in money, either."
Henning Mankell "We must defend the open society, because if we start locking our doors, if we let fear decide, the person who committed the act of terror will win"
Robert Graves "There is no money in poetry, but then there is no poetry in money, either."
Henning Mankell "We must defend the open society, because if we start locking our doors, if we let fear decide, the person who committed the act of terror will win"
Would anyone like to answer this little girl's question?
- 02/08/2011 02:47:24 PM
948 Views
Because your mommy and daddy would rather write a sign for you to hold than pay taxes.
- 02/08/2011 03:00:24 PM
412 Views
Bull - fucking - shit.
- 02/08/2011 05:23:51 PM
459 Views
Re: Death panels!
- 02/08/2011 07:21:47 PM
418 Views
It wouldn't bother me so much if he didn't know that very well.
- 02/08/2011 08:37:38 PM
413 Views
Entitlements are part of the problem, but far from the whole of it.
- 02/08/2011 08:31:23 PM
438 Views
Believe it or not, I agree.
- 03/08/2011 03:07:48 AM
345 Views
aww sweetie
- 02/08/2011 03:58:53 PM
390 Views
It is better for the economy
- 02/08/2011 07:15:58 PM
383 Views
Because successive governments thought that spending more while taxing less was a good idea.
- 02/08/2011 06:25:16 PM
387 Views
Because you got your Bachelor's at a technical school. *NM*
- 02/08/2011 10:11:14 PM
145 Views
yes you should have gotten a lit degree from harvard *NM*
- 03/08/2011 05:54:45 PM
133 Views
You don't. No-one is going to send debt collectors round to demand $46,000 from your piggy bank.
- 03/08/2011 04:29:59 PM
365 Views
Because your parents bought too much booze on their credit cards *NM*
- 04/08/2011 01:50:13 PM
160 Views