How do stocks work and how do both sides (company and buyer)benefit from it?
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The company sells a stock in order to increase availability cash. They can take this and use it for anything they may like. Sometimes startups will give stock as bonuses instead of paying it out in cash.
As a stock owner you are banking on the value going up so you can sell it at a later date. Some stocks pay dividends so when a mature company has profits they don’t want to reinvest in themselves they pass it along to the owners.
There are other benefits but this covers the basics.
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