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Question: Could one receive profit for just holding a stock?

(Posted by: jaarcomp on 2010-09-05 10:03:58)

I know this answer is very easy but I just don't know it... Is the stock market all about buying and selling stocks, or are there any benefits from holding a stock, other than selling afterwards more a better price/ profit? Thanks in advanced...

Answers:

Posted by: the tax lady on 2010-09-05, 10:04:45

Until you sell the stock, the gains are considered "paper " and not taxed yet.

Posted by: Patrick on 2010-09-05, 10:06:06

You can receive profit if the stock you are holding pays a dividend which is basically a portion of the company's profits.

Posted by: Ryan M on 2010-09-05, 10:11:20

Yes....it's called dividends.

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