HOW DOES DANGOTE SHARES BUYING

Nne, if you buy Dangote shares with 1 million naira and hold them for a year, the profit you make depends on the performance of the company and the stock price movement. Imagine you go to the market, and you decide to buy tomatoes from Mama Ngozi at a particular price. Now, after some time, maybe a week or a month, the price of tomatoes goes up. If you decide to sell the tomatoes at the new higher price, you make a profit, right?

It’s the same with buying shares. If Dangote’s business does well and the price of Dangote shares goes up, when you sell the shares after a year, you make a profit. But if the price goes down, you may make a loss when you sell. This is because when you buy shares, you become a part-owner of the company, so your profit depends on how well the company does.

So, in simple terms, if Dangote shares go up in price, you sell the shares at the higher price, and the difference between what you bought them for and what you sold them for is your profit. But if the price goes down, you may sell the shares at a lower price than you bought them for, and that would be a loss. Remember, the stock market can be unpredictable, so there are risks involved in buying shares. Always do your research and understand the company before investing.

Now, let’s say you bought the shares at 1,000 naira each, and after a year, the price increases to 1,500 naira. If you sell your shares at that price, and you initially invested 1 million naira, your profit would be calculated as follows:

Profit = (Selling Price – Buying Price) * Number of Shares

= (1,500 – 1,000) * (1,000,000 / 1,000)

= 500 * 1,000

= 500,000 naira

So, in this scenario, your profit after a year would be 500,000 naira. Just like you would want the best tomatoes to sell in the market, it’s essential to make informed decisions when investing in shares. Always stay updated on the company’s performance and the stock market trends.