Answer
If you sell stocks for more money than what you paid for them, you have a net gain on the sale. Some companies distribute all or part of their profits to shareholders as dividends.
Work Step by Step
Stocks are shares of ownership in a company. There are two ways that investors make money with stocks. If you sell stocks for more money than what you paid for them, you have a net gain on the sale. Some companies also distribute all or part of their profits to shareholders as dividends.