How much money will you make by investing in shares?
Unfortunately, it’s impossible to predict with certainty.
Investors make money from shares by collecting dividend payouts and by selling the shares at a higher price than what they bought them for.
But shares don’t offer a guaranteed return.
A share (or stock) might double in value in just a few months, or it might become worthless in a matter of days.
That’s why it’s crucial to remember that when you buy a share of stock, you are buying a small piece of a real-live business.
If the quality or prospects of this business improves over time, then the price of its shares will tend to rise (assuming its shares were priced reasonably to begin with). If, on the other hand, a company’s quality deteriorates, its share price will tend to fall.
Share prices rise and fall in response to the law of supply and demand. Simply put, investors are willing to pay more for shares of a healthy, promising business than they are for a weakening one.