Investing in Common Stocks
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.
You have what is called common stock, which is easily placed as the most common type of stock you will come across. The most popular choice of people to invest in stocks with no type of restrictions being placed on a person. Anyone can buy this type of stock.
As you buy stock in a company you will become known as a shareholder in that company. Another fancy way of saying that you are part owner in the company due to placing in money. As a business increases in value or does well, prices of stocks will rise. This is the way in which you will earn money, if you sell a stock after it's rose up in cost from what you've paid.
As part owner of the business you also will vote in decisions that are made for the company. You will vote when the board of directors is placed together, and you may well have a huge say in which way the company goes in many decisions.
Though you will not always see the pluses when it comes to investing in stocks. If the company hits a rough time or goes out of business you will lose money. At times you may even lose everything you've invested in those stocks.
Different types of stock are available. As an example we will talk about a family owned company. If they may want to bring in extra funds they will create another class of stock. These stocks may only entitle the holder to one vote, while the class of stock the family holds will be worth 10 votes. However, they have found a way in which more money can come into the business. - 23223
You have what is called common stock, which is easily placed as the most common type of stock you will come across. The most popular choice of people to invest in stocks with no type of restrictions being placed on a person. Anyone can buy this type of stock.
As you buy stock in a company you will become known as a shareholder in that company. Another fancy way of saying that you are part owner in the company due to placing in money. As a business increases in value or does well, prices of stocks will rise. This is the way in which you will earn money, if you sell a stock after it's rose up in cost from what you've paid.
As part owner of the business you also will vote in decisions that are made for the company. You will vote when the board of directors is placed together, and you may well have a huge say in which way the company goes in many decisions.
Though you will not always see the pluses when it comes to investing in stocks. If the company hits a rough time or goes out of business you will lose money. At times you may even lose everything you've invested in those stocks.
Different types of stock are available. As an example we will talk about a family owned company. If they may want to bring in extra funds they will create another class of stock. These stocks may only entitle the holder to one vote, while the class of stock the family holds will be worth 10 votes. However, they have found a way in which more money can come into the business. - 23223
posted by X - Men @ 9:24 AM
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