When one buys stocks, we will earn money through the future current income from Dividend and the future capital appreciation from Price increases.
It is wide known that stockholders expects the stock price per unit to continue increasing so as to realized gain on the invested capital on the stock.
Normally, the stockholders is entitled to dividend which means the profit distributed to them after end of accounting period.
Also, the stockholder will also experience future capital appreciation through the Price increases on his stock.
In conclusion, when one buys stocks, we will earn money through the future current income from Dividend and the future capital appreciation from Price increases.
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