Now that we understand how companies raise capital, let's flip the script. How do public markets create and distribute wealth for investors like you and me?
This is where the magic happens - ordinary people building extraordinary wealth through stock ownership.
Engagement Message
What do you think happens to early Apple investors who held their shares for decades?
There are two main ways public markets create wealth for investors: stock price appreciation and dividend payments.
When you own shares of a company that grows and becomes more valuable, your shares become worth more too. This is called capital appreciation.
Engagement Message
If you bought $1,000 of a stock and it doubled, how much would you have?
Here's a real example: If you bought $1,000 of Amazon stock when it went public in 1997, it would be worth over $1 million today!
The company grew from an online bookstore to a global tech giant, and shareholders who held on participated in that incredible wealth creation.
Engagement Message
What amazes you more - that growth rate or that regular people could participate?
Dividends are the second wealth mechanism. Many profitable companies share their success by paying regular cash dividends to shareholders - often quarterly.
Think of dividends as your share of the company's profits, paid directly to your account just for owning the stock.
Engagement Message
Would you prefer a stock that grows in price or pays steady dividends?
The real wealth-building superpower is compounding over time. When you reinvest dividends to buy more shares, and those shares appreciate, you earn returns on your returns.
This snowball effect is why starting early and staying invested for decades can create life-changing wealth.
Engagement Message
How do you think compound growth might affect wealth over 20-30 years?
