#ثلاث_أساسيات Things to Know Before Investing in the Stock Market
The stock market may seem complex and mysterious to many new investors, but understanding it requires grasping three key elements that make a stock worth buying and investing in.
1️⃣ Earnings Growth
Invest in companies that achieve steady and growing profits, as increasing profits are often linked to rising stock value.
2️⃣ Price-to-Earnings (P/E) Ratio
Calculate the price-to-earnings ratio by dividing the stock price by its earnings per share, and compare it to the stock's past and similar companies to ensure the stock is fairly valued.
3️⃣ Dividends
Choose companies that distribute regular cash dividends, as they are usually stable companies with strong financial performance.
Understanding these three pillars gives you the essential tools to start building a successful investment in the stock market, turning complexity into a real opportunity for financial growth.
Source: Go Banking Rates.
*The published content is not investment advice. Financial decisions are your personal responsibility, and we always recommend conducting your own research or consulting a professional before making any investment decisions.
