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Seasoned traders use many methods of analysis to see the trend of the growth of the company and their valuation. This way they can predict if the price of the stocks will go down or up. This movement of the price will determine whether they want to buy or sell the stock of a certain company. This will also determine the dividends the stock will pay. Dividends are the payment each stockholder receives from the profit of the company where he has invested in. Every year, the net profit of the company is divided among the shares of stocks existing.

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