Question

How do stockholders earn money on their financial investment?

Answer 1

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If an S corp with 1,000 shares has a $100,000 profit, then shareholders must report (and pay taxes on) $100 in income for every share they own. When selling shares in an S corporation, make sure the buyers understand how company profit can actually cost them money, at least in the short run.
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Answer 2

Choosing the right place to invest your money is a difficult decision even for financial experts who know the ins and outs of personal finance. It is vital to have a basic understanding of how investments work before committing any money so you can make informed choices. Stocks are a common form of investment that offer two ways for shareholders to make money: capital gains and dividend payments.

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