People who buy shares of stock in a company may make money in two ways.They may begin to make money right away.(1)__________________________________________.The money that is shared is called a dividend.Dividends are usually sent to investors once every three months while they own the stock.A second way that investors may make money is to sell the stock at a higher price than the price they paid when they bought it.(2)______________________________________________.Mr. and Mrs. Smith want to invest in the stock market with ＄1000.They talk to a stockbroker,who is licensed to buy and sell stocks on the stock market.The broker tells Mr. and Mrs.Smith about the Ward Pencil Company,which is making a lot of money and is selling shares of stock.The shares cost ＄5 each. The Smiths decide to buy 100 shares.The broker fills this order, and the Smiths own these 100 shares.In three months, the Ward Pencil Company issues a dividend of ＄1 per share.The Smiths have 100 shares, so they get a ＄100 dividend.Then the company expands.The price of the stock goes up to ＄6 for each share.Mr. and Mrs. Smith decide to sell their stock at ＄6 a share.They get back ＄600, (3)_______________________________________.This is a very good investment.
