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Guide outlines how stock investors earn returns via price gains and dividends
The piece explains that investors can profit from both capital gains when they sell shares higher and dividends when companies distribute part of earnings to shareholders.
A Yahoo Finance guide on stock investing describes two primary ways shareholders can earn returns: price appreciation that leads to capital gains, and dividends paid from company earnings.
It says that when investors buy shares of a publicly traded company, they take on a small ownership interest in the business, and that not every company pays dividends.
The article also notes that most trading now occurs electronically through brokerage accounts, with stock prices fluctuating as buyers and sellers adjust what they are willing to pay for shares.