One of the ways a savvy investor can increase his wealth is by investing in stocks.
Stocks — sometimes called shares or equity — allow you to have an interest in the company you invest in. You can then claim some of its profits or assets in the form of dividends. You may also be able to vote at its shareholder meetings, which can be important if you want to influence its strategic direction as well.
When you sell your shares, you get a capital gain if you make money from it or you must declare a loss if you lose money. While stocks are the riskiest investments, they usually offer the highest returns if you buy them, and hold them for the long term.
