What do you really get from owning stock?
Eversince I was little my grandmother has been getting checks from Boeing because she owns stock. Why does she gets checks for owning stock or something?
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Answer by drmark27
Companies that make money have a couple choices as to what to do with the money. They can invest it in other things that will make them more money (e.g. research and development, hire more workers, buy more equipment, invest in other companies) or they can give some back to shareholders in the form of a check like the one your grandmother receives. The latter is called a dividend. For many investors, dividends are a reason to buy stock. Just like bonds, which pay interest on a regular basis, these investors count on dividends as a regular source of income.
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