how does investing and interest work?

Q: how does investing and interest work

A: 6% interest is i lend you $100 and in one year time, you pay me back $106 as for investing its a bit more complicated. depending on what you invest in. bonds work quite similar to interest, you give money to a company, they pay you back in several years, and they pay interest over those years. shares however are different. a company, can sell part of itself, to go on the stock exhange. the company gives out shares. shares are % ownership of a company. so if i own 5% of a company, then im entitled to 5% of the profit it makes. shares therefor rise and fall, by how much people expect the company to perform profit wise in relation to other companies in the same field. investors, try to rise this rollercoaster of rising and falling prices to make profit. buy low, sell high and walk away with profit.

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