How Does the Stock Exchange Work

If the price of the share grows as the company grows, how does buying shares in a company benefit an investor?

• An investor will be able to sell these shares for a lower price and make a profit.

• An investor will be able to sell these shares for a higher price and make a profit.

• An investor will be able to enjoy free services from the company they bought shares from.

How does selling shares on the stock exchange benefit companies?

• They rely on a low return when selling shares.

• They are immune to any volatility in the stock exchange when they sell their shares.

• They receive funds to further expand their company.

As an investor, what is the risk involved when investing in companies on the stock exchange?

• Investors can lose their existing shares if the value of the stock does not increase within 90 days of purchase

• Once they purchase a share, investors cannot sell them at a higher price

• The price of stocks can decrease; for example, when the company receives bad press