If I buy shares in a company, do I get a percentage of their yearly profits?

+1 vote
asked Oct 16, 2017 in Investing by Dottie3 (280 points)
If I buy shares in a company, do I get a percentage of their yearly profits?

1 Answer

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answered Oct 16, 2017 by Mechanic21 (29,150 points)

 No you don't get a percentage of the yearly profits being a stock holder. 

Stock shares are a way for a company to raise money to buy things.

 In some cases, it just might give you a right to vote in a share holder's meeting. 

A few companies provide dividend checks to certain stock / share holders, depending on the type of stock you might have purchased. 

Keep in mind that not all stocks are alike. In most cases, you don't get a dividend payment from your stock purchases. 

In most cases, it's value is very volatile and is subject to other stock owners' selling behavior. If someone or a large group of people dumps (sells) a lot of stock at one time, the price will usually drop significantly, often as a result of poor quarterly or annual earnings reports.

In conclusion you don't get a percentage of the profits from a company when you buy shares in the company.

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