How does investing work?

[Jrjohnny]

Before you get shocked by the title, I know what it means, but like how does it work, I know its where you put money into something, get part of the company, and stocks go up and down in value and you can sell it for profit blah blah blah but, dividends, do they expire? Or when you invest 5 million, do you just keep getting monthly pay outs? Do you just keep investing in the same company and they keep paying you?? How do I know if its a good investment and such?

I know I sound like an idiot alright? Just answer these questions if you could. I just cant get a grasp on how this works

 

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[100k]

Youtube.... is your friend.

 

[Kevin88660]

Before you get shocked by the title, I know what it means, but like how does it work, I know its where you put money into something, get part of the company, and stocks go up and down in value and you can sell it for profit blah blah blah but, dividends, do they expire? Or when you invest 5 million, do you just keep getting monthly pay outs? Do you just keep investing in the same company and they keep paying you?? How do I know if its a good investment and such?

I know I sound like an idiot alright? Just answer these questions if you could. I just cant get a grasp on how this works

Fundamentally the investment must serve your own purpose and specific goals/time horizon.

Dynastic wealth invest in gold, land and arts. At least in war you still can run away with gold and art work. Stocks and bonds get wiped out.

 

[parabolic]

Dividends that you receive do not expire.

A company can alter future dividends but once you receive them they are yours.

Dividends can be received as cash or reinvested into the security. Your choice.

You know if something is a good investment by researching it. If you don't want to research, you can read reports from people who do that sort of thing. Morningstar is one such company. It's always best to do your own research (DYOR) so you don't have anyone to blame but yourself.

If you don't know where to start, there are plenty of very informative educational videos on YouTube as @100k suggested.

 

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