August 23, 2012

                  There are two ways the stock market gives profits: share price increases so that you can sell it for more than what you paid for, and through the dividend payouts. When a company is doing successfully, the stock price increases. Profit and company growth are what makes it successful. Long term, there’s a direct correlation between a company’s profits and its share price. Growth investors buy high sell and sell high, value investors buy cheap and sell high. Value investors usually end up getting more profit over time. Emotions are what make stock prices move short term. Profit makes them move long term.