Tip - C. Why Do People Buy Common Stock? - Series 99 | Investopedia

Published  | Submitted by John Amato
C. Why Do People Buy Common Stock? - Series 99 | Investopedia

The main reason people invest in common stock is for capital appreciation. They want their money to grow in value over time. An investor in common stock hopes to buy the stock at a low price and sell it at a higher price at some point in the future. Example: An investor purchases 100 shares of XYZ at $20 per share on March 15, 2011.
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