A、By sharing the profit made by the company. B、By selling the stock at a higher price. C、By working hard. D、By studying about th

People who buy shares of stock in a company may make money in two ways. They may begin to make money right away. The company shares its profit with the investors. The money that is shared is called a dividend. Dividends are usually sent to investors once every three months while they own the stock. A second way that investors may make money is to sell the stock at a higher price than the price they paid when they bought it.
    Here is an example of how this process works. Mr. and Mrs. Smith want to invest in the stock market with $1000. They talk to a stockbroker, who is licensed to buy and sell stock on the stock market. The broker tells Mr. and Mrs. Smith about the Ward Pencil Company, which is making a lot of money and is selling shares of stock. The shares cost $5 each. The Smiths decide to buy 100 shares. The broker fills this order, and the Smiths own these 100 shares. In three months, the Ward Pencil Company issues a dividend of $1 per share. The Smiths have 100 shares, so they get a $100 dividend. Then the company expands. The price of the stock goes up to $6 for each share. Mr. and Mrs. Smith decide to sell their stock at $6 a share. They get back $600, plus all of the money they have received in dividends. This is a very good investment.