Explanation

When you own a stock, you own a portion of a company. As that stock gains in value, you gain money. When you buy a stock it is considered either a trade or investment. A trade is short term buy. You are waiting for a specific even that will make that stocks value spike up quickly. This event is called a catalyst. An investment is a long term buy. Investments are made when you let a stock appreciate over a 10 to 15 year length of time. Over this time you get paid small portions of money for owning that company's stock. This is called a dividend.