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when people invest in the stock market and they make money, the money they gain is considered profit which is a part of their capital gains. Capital gains refer to the profits from selling assets such as stocks. study with quizlet and memorize flashcards containing terms like how does investing in the stock market differ from putting money in a savings account at a bank? spread your investments in several different areas. An investment with more liquidity would be ideal for someone who. Knows they will need cash in the near future. aug 15, 2024 · learn how the stock market works, why companies issue stock, what happens when you buy a stock, and what happens when you sell a stock. study with quizlet and memorize flashcards containing terms like stockholders can only make money by collecting dividends. A. ) true b. ) false, people who invest in the stock. people who make money investing in the stock market are often referred to as investors. There is a distinction made between investors and speculators. apr 18, 2024 · what are stocks? Stocks are an investment that means you own a share in the company that issued the stock. Simply put, stocks are a way to build wealth.