How Stock Investing Works
Stocks have in past history earned their investors more money than other choices like money markets and bonds. Basically it's like you're buying a part of a business and investing in them. It's the case of you giving them money to do what they do; your payment is partial ownership of a company.
When you invest in stocks you are supplying money to a company and in turn you will have partial ownership in this company. Common stocks are what most people will deal with when they become involved in the stock market. These are the stocks that no restrictions are placed on and any one is able to buy.
You will become what is known as a shareholder in a company. Meaning you own part of the company for the money you have placed into this stock. When the business succeeds and earns more money the price for the stock will increase, and you will earn money.
Yes you will also have a vote about what the business does in the larger decisions. Perhaps even being placed on a board of directors which will do the hiring and firing of key managers in companies. Though it's a lot of responsibility that most investors like to avoid.
Stocks can come crashing down too, and you will lose you money in some cases. Imagine all those people who had purchased stock in Enron, they have no money left now. So you need to watch carefully if you want to invest in stocks.
Some companies will not have stocks available to the public. Most of the time if they need to raise money they will go about it in different steps. However, from time to time a family owned business or other company will release some stock for public purchase. That's when another type of class of stock is said to be made. - 23162
When you invest in stocks you are supplying money to a company and in turn you will have partial ownership in this company. Common stocks are what most people will deal with when they become involved in the stock market. These are the stocks that no restrictions are placed on and any one is able to buy.
You will become what is known as a shareholder in a company. Meaning you own part of the company for the money you have placed into this stock. When the business succeeds and earns more money the price for the stock will increase, and you will earn money.
Yes you will also have a vote about what the business does in the larger decisions. Perhaps even being placed on a board of directors which will do the hiring and firing of key managers in companies. Though it's a lot of responsibility that most investors like to avoid.
Stocks can come crashing down too, and you will lose you money in some cases. Imagine all those people who had purchased stock in Enron, they have no money left now. So you need to watch carefully if you want to invest in stocks.
Some companies will not have stocks available to the public. Most of the time if they need to raise money they will go about it in different steps. However, from time to time a family owned business or other company will release some stock for public purchase. That's when another type of class of stock is said to be made. - 23162
posted by X - Men @ 4:02 AM
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