A stock is a share of a company. If a company was worth $100 and they issued 100 shares, each share would be worth $1, if you bought 51 shares, you would own 51% of the company.
Buying as tock gives you a part of a company
A dividend is them paying you if they do well, think someone giving you interest.
Stocks go up over time as the company value goes up, think that $100 company value goes to $200.
Basic of options:
Options are trading the right to buy or sell 100 shares of a stock at a certain price on a certain date.
You have an $8 stock, you think it will go to $10 in 6 months. You pay to have the right, so you pay $20 for the right. If the stock goes to $10, you get 100 shares, but you only pay $8.
Options are expensive because there is a premium on them, you have to pay for that right
You don’t have to take the shares, you can sell that contract to buy 100 shares to someone else.
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