Confused with stocks?

hello, when own stock company use of it's cash pay it's investors in form of dividend. investor or owner of stock have option 1) have dividend sent or have put in brokerage (charles schwab in case) money market account (which interst bearing account, similar checking account) or 2) have dividend buy additional shares of stock. there no right or wrong way treat dividends, investors receive dividend checks while others have them "reinvested" , buy more shares of stock. it's personal preference, 1 important thing keep in mind people don't think about, if go option of reinvesting dividends , it's in non retirement account, make sure keep acurate records. reason being if / when ever sell stock need provide accountant "cost basis" or prices bought each of additional shares bought via reinvestment. hope helps

i'm using charles schwab account buy stocks. know nothing stocks reinvesting , investing dividends mean. how gain money? don't talk buying low , selling high.

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