Investing in Stock Picks
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.
Most people will deal with what is called common stock. These are stocks that have no sort of restrictions to them, anyone can buy them. Be you a young investor or an investor who is older, common stock could well be the choice for you.
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.
It's not all about making money when it comes to the stock market though. You can have times when a company may lose some money, or they could go bankrupt. You can lose all the money you've invested in some cases too.
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. - 23222
Most people will deal with what is called common stock. These are stocks that have no sort of restrictions to them, anyone can buy them. Be you a young investor or an investor who is older, common stock could well be the choice for you.
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.
It's not all about making money when it comes to the stock market though. You can have times when a company may lose some money, or they could go bankrupt. You can lose all the money you've invested in some cases too.
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. - 23222
posted by X - Men @ 2:07 AM
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