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Example: How Shares Work

Apple tree Let’s pretend this apple tree is a company, and you own a share of it. Your share is for ½ of the apple tree.

Apples in a basket In the first year, the tree makes 20 apples. That means 10 apples are yours because you own half of the tree.

In the second year, the tree makes 60 apples. Since you still own half, you now get 30 apples. Apples in a basket Apples in a basket Apples in a basket

In one year, you got 20 more apples than you did the year before. That’s a good investment!

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