Some companies pay dividends and that is a small portion of the company’s earnings. These dividends are proportional to what percentage of the company you own. Many people think of this as to be the best and simply way to generate an income from a stock and stop there.
Also find out about the fund’s beta, another measure of risk. Generally if the beta is greater than 1.0, the fund generally is more volatile in comparison to stock promote. For example, a beta of just one.2 means the fund is probably going to decline about individual.2 percent when business falls 1 %. Many aggressive growth funds have betas of one specific.5 or higher.
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