What is the stock connected?
The shares connected is an example of shares or other asset, which is promoted with the value that has been inflated by actual market performance. The connected shares were once a common phenomenon in many business environments around the world, but today they rarely appear. Most of the disappearances of the connected shares as a capital investment are caused by changes in the laws used by corporations to issue shares. At that time, cows and other forms of livestock were considered and sold by a pound. In essence, the strategy was used by excess water into the animals, temporarily inhaling the animal and raising weight. The higher rate led to a higher selling price that directly benefited the seller. At the same time, the buyer would find that the warehouse heads would lose great weight in a very short time. Watečného shares include a completely artificial process that temporarily inflates the overall value of the stock, the name became synonymous with financial movement by the early 20th century.
As in the Old West Days, the connected shares still have a risk directly with the investor. The connected shares work in accordance with the inflation of claims to the value and current profitability of the company to sell shares and bonds at a price that cannot be justified by the actual value of the corporation. In the event that the corporation does not continue and the creditors have forced the company to close the market, the holder of the connected shares could not only lose the amount of the capital allowance, but also to be the nominal value of the shares issued.
Capital investments, such as connected shares, often look very good at the beginning, especially, because shares are presented as a much greater potential for return than they actually have. However, the degree of risk associated with the connected shares is so strong that the investor would be well recommended to avoid any agreement where the shares or bonds in question appear to be higher than the company's current condition justifieda.