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
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