What are stocks?
own capital shares represent most of the financial market shares. This type of stock, which sometimes refers to common stocks or stocks, is used to claim partial ownership of the company. The shareholders 'shares are entitled to shareholders' profits and voting rights equal to the amount of shares owned. When purchasing stock shares, there are certain risks because it pays only if the company is successful or if some assets remain the believing and preferred shareholders dismantle an unsuccessful company. Debt financing involves receiving loans and bond issuing for money in return for the promise of repayment of investment. The financing of its own capital involves issuing shares that basically distribute the ownership of the company. Shares of shares represent part of the company owned by shareholders; Unlike bonds or loans, shares do not guarantee the repayment of the initial investment.
One of the benefits of stock shares is the right to vote. Companies that use the financing of their own capital tend to operate through the Board of Directors that operate the daily operation of business. The task of the Board of Directors is to make the company as profitable as possible. If shareholders believe that the Board of Directors does the wrong job in managing a business, they can vote outside the office. The relationship between the Board of Directors and shareholders does not give shareholders direct authority over commercial decisions, but allows shareholders to influence the company's direction.
stock shares guarantee shareholders the right to part of the business; In fact, the purchase of these shares acquires ownership for profits, rather than buildings, tables, chairs or products that make up the company. If the company is not profitable, shareholders do not have to earn any money for their shares, but are not responsible for the company's failure. Since most stock shares are limited responsibilities, IRS or creditors cannot come to shareholders ifThe company fails. On the other hand, because there is no repayment guarantee for the initial investment in stock shares, shareholders will lose all the money invested in the shares if the company closes.
Most stock shares are traded through exchanges that operate both in physical places and virtual trading floors. Shareholders can buy, sell and trade each other every day if they want it, even if many prefer to find a reasonably profitable investment and stick to it. The stock market is extremely complex, leading many people with significant investment portfoli to leave investment decisions to a financial manager or broker full of service. Those who decide to educate themselves in the world of bears, bulls and trade floors can try to cut a mediator from choofinating their own shops.