How Do Stocks Work in 2022?

A stock represents a means for companies to raise capital outside of a regular revenue stream. When companies sell shares of stock, they sell a small piece of ownership for interested investors to buy.

In doing so, investors get voting rights, dividends, and any gains from increases on the stock market.

You can make the stock market work for you, buy and sell for quick capital gains, or grab stocks that pay dividends.

How Do You Make Money From Stocks?

It’s never quite that easy, but investors tend to choose one of a few different paths when earning money through price appreciation.

Price Appreciation


Categorized by their potential to appreciate over time. Investing in these is a long-term process and can take many years to bear a significant amount of fruit.

Growth Stocks


This approach is not for the faint of heart. Investors must thoroughly research the stocks with the highest potential to grow while weighing how much risk an investment will be.

Day Trading


Companies typically pay dividends quarterly. Although dividends are only a few percent, having several shares of stock in a particular company can still result in decent gains.