Imagine you and 4 friends start a pure water factory. Total cost is ₦5 million. Each person puts in ₦1 million. Each person owns 20%.
The factory makes ₦1 million profit in a month. Your 20% share is ₦200,000.
Demand grows, distributors want more, and someone offers to buy your 20% for ₦3 million. Your ₦1 million just became ₦3 million.
That’s exactly how the stock market works. Replace “pure water factory” with BUA Foods or Zenith Bank. Replace the 5 of you with millions of shareholders.
You’re buying a piece of a real business. That’s all a stock is.
@midrizzy1 I need a laptop for a better performance and larger screen for analyzing charts and data. It gives me the necessary power for multitasking most especially complex analysis as compared to the mobile phone.