How do stocks work and how do you make a profit off of it??
In: Economics
Pokemon/Yu-Gi-Oh Cards are Assets. You buy and sell cards from others. The money value of the cards depends on the demand and supply of the individual cards. The supply of the cards are fixed by the drop rated. The demand of the card depends on the meta.
Stocks are Assets. You buy and sell stocks on the market through a broker. The money value of the stock depends on the demand and supply of the individual stocks. The supply of the stock are fixed by how much of the stock has been released on the market. The demand of the stock depends mostly on how people think the company will perform in the future.
Stocks themselves are parts of “ownership” of a company. When company makes profit, they pay out to their owners, usually 0%-6% of the price of the stock annually, so they have a bit more to support their values than supply and demand.
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