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/biz/ - Business & Finance

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56284269 No.56284269 [Reply] [Original]

How the fuck do stocks make people rich if the dividend is merely 2-3% of the stocks value?

>> No.56284274

The stock itself goes up retard

>> No.56284278

>>56284269
They don't tell you which people they make rich

>> No.56284292

>>56284269
Zero sum game, someone betting it goes down loses money while the guy betting the other way wins, yes you can own names too but that's for pussies/faggies

>> No.56284298
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56284298

>>56284269
Because you're supposed to buy more with the dividend money.

>> No.56284307

>>56284269
>company makes more money
>dividend goes up

>> No.56284309

>>56284292
Finance is a zero sum game but industry can create wealth.

>> No.56284449

>>56284269
Stocks make people rich not by dividends but by people selling said stock once it goes up in price. So if you buy $10000 in stocks for a company, and over time that stock goes up 20%, you sell it and get $12000, earning $2000. After that you pay taxes, which are deducted from the amount gained, so if tax is 20%, that's 2000-400= $1600 net gain.
Needless to say, you need to invest very high amounts to make significant money.