Post by troykeathers on Feb 19, 2021 12:45:07 GMT
When you invest money, either by purchasing stocks or shares of a company or by buying mutual funds, your money ends up earning its own income. If the value of the stock or mutual fund increases, you can earn money if you sell the stock for the higher price. Plus, many stocks or mutual funds pay dividends (a percentage of the company’s earnings) each quarter. The dividends you earn on your investments often get re-invested in the company, so the amount of stock you own— and the value of that stock—increases.