Question

Companies can get extra funds by selling shares here

Answer 1

Once a company sells stocks, it keeps the money raised to operate and grow the business while the stocks are traded. Investors and traders can buy and sell shares of stock, but the company no longer receives proceeds from sales beyond the initial public offering. Shareholder dividends, or portions of the company's earnings could be earned. Cash dividends are usually paid on a quarterly basis, but you might also earn dividends in the form of additional shares of stock. Stocks offer investors the greatest potential for growth over the long haul. Investors willing to stick with stocks over long periods of time generally have been rewarded with strong, positive returns.

However, stock prices move down as well as up. There’s no guarantee that the company whose stock you hold will grow and do well, so you can lose money you invest in stocks.