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Nurseinvestor @abalu_uthman on x 10.1K followers
Created: 2025-07-02 07:47:48 UTC
“I am new to investing-How do people actually make money in the stock market?”
In the most basic way, you make money in the stock market in two ways. 1- Capital appreciation: In a simple term you invest say £100 or 10000 naira in a particular stock or fund and in a month or a year, the value of the stock has now risen to £200 or 20000 naira respectively. That’s capital appreciation, essentially you are investing in a stocks at a lower price and selling at a higher price.
2-Dividend: This in simple term is any company you invested in saying, thank you for investing in us, this is your own share of the promise we made. This is the highest form of passive income because all you have to do is own shares in a company and you will be getting paid. It’s important to know that it’s not all companies that pay dividend and the frequency of payment also differs and even the percentage paid also differ.
My favourite are companies that are growing, innovating new things and are still paying dividend.
These are the two ways you make money in the stock market so it really all depends on your investment goal and what stage you are in your life.
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