Final answer:
To profit from investing in stocks, one can earn from capital gains by selling a stock at a higher price and dividends distributed by companies to stockholders.
Explanation:
Two ways to make a profit from investing in stocks:
- Capital gains: Selling a stock for more than you paid, profiting from the price difference.
- Dividends: Earning money from company profits distributed to stockholders.
Investors can benefit by identifying growing companies with high future profits or popular appeal, leading to stock price increases or dividends paid out.
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