what is a stock
Stock is the capital raised by a company or cooperation through the issuing and subscription of shares. It is the shares of a company held by an individual or group. It constitutes the residual stakes of its owners. Then what are shares, a share is an equal part of a company’s capital divided to individuals entitling a portion of the company’s profits.
Stock owners make money without having to show up at the work place, stock marketers sit back to watch their businesses growing and collecting the dividends at the end. Stock owners do not take part in the running of the company they own their shares but collect profits and dividends at the end. This may sound somewhat impracticable but it is close to reality. This is stock. see why to invest in stocks
As a stock owner, it means that you are shareholder of company assets, you are entitled to everything the company owns and you are entitled to any profits made by the company, you also have a voting right attached to your stocks depending on the number of stocks you have.
Your ownership of stock is represented by a stock certificate which represents your ownership of the stock, now modern technologies have made it possible that you can own and participate in stock business online. Before, sock business is traded offline, stock owners that wanted to sell their stock has to go the brokerage firm with their stock certificates.
Being a stock owner of a public company does not mean that you have a say in the day-day running of the business. But you have your vote to elect the board of directors that is your one vote per share.
Many people are now interested in stock business, what used to be for the rich and influential has now turn to be everybody’s business for growing wealth. This is as a result of the recent technological advancement; anybody can own and run a stock business, see how to select good stocks
But the bad part of it is that many who are interested in the stock market do not know how the market operates. Many people heard about how successful stock marketers made their money and decided to join stock business. Stock business can make people rich but it also has some risks. The only weapon to this is education: know where you are putting your money and when to remove your money from that place
A stock exchange is a market where shareholders buy and sell their share, it is a platform where sock buyers connect with stock sellers. A stock can be traded through broker but know your exchange and company. The function of an exchange is to provide liquidity to stock sellers.
Stock come into market after a company makes initial public offering, during which a company sells its share to the primary market before it can be purchase in the secondary market. It is in the secondary market that people like me and you can buy the stocks.
The stock exchange manages the stocks that flow into the market; they manage the orders, while the demand and supply determine the stock price. how to select a stockbroker