What's a stock? <10 points> please help!!

Question

I mean like those that are advertised online like for $4, what are they for? how do they work? what's the point? etc.

Answer 1

For right information on this topic you should visit the site;

www.sharetips.99k.org

Thanks.

Answer 2

A stock or share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Equity is a share in the ownership of a company. It represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company increases. The terms share, equity and stock mean the same thing and can be used interchangeably.

A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities

A stock market is a market for the trading of company stock/ shares, and derivatives. This includes securities listed on a stock exchange as well as those only traded privately. Market is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc

i think its enough for ur query... start investing systematically now.. best of luck bye, simar

Answer 3

A stock is another name for a share. As this word indicates in this context it is a share of a company. If you can buy &amp; sell it (trade) it will more than likely be listed (on a recognised stock exchange).

If you buy one share at $4 like you mention above you own one share out of the possibly many millions of issued shares in that company that are owned by other individuals or institutions. So your one share would represent 1/number of shares in issue x 100 percent of the whole company. If that company made a profit this year it might pay its shareholders some of it, called a dividend. You would get your relative share of that dividednd. Of course that $4 can go up or down according to what investors think of the prospects of the company.