Yeah, that was perplexing to me in the beginning also. I would think, I am always buying this particular cleaning product. This product was always in my favorite dollar store. So one day, I decided to figure it out. I’ll make this easy for you. You just need a simple strategy.
- First, understand that publicly traded companies on the stock market, must disclose all of their financial information to the public
- This means you can see the companies performance history, future expectations and all their financial data, these are your indicators
- This will tell you if the stock is worth buying
- Now recognize what’s in it for the company. They sell you stock in order to raise capital for their company. If they sale 500,000 shares at $2, they just raised $1,000.000.00. If the company re-invests this money into its people, overhead, etc.., there’s a good chance your shares of stock will increase in value and bring you a profit, yeah you, the investor