Companies, to raise capital, will sell small portions of their company to the public. These are called stocks. Someone who owns a stock is considered a shareholder. A shareholder has the right to voice his opinion about the companies management and share in the profits.
The reason a company sells stock is because they need. A company may want to purchase property, for example, selling stock will give them the capital to do this. The value at which the stock is sold depends on the growth and success of the company.
Purchasing stocks in a new company would be considered risky considering the new company does not have a proven track record. Investing in a company that has been reputable will have a much lower risk factor. Although purchasing stock in a new company that eventually is very successful will yield a great return,
An investor will buy and sell stock through the National Association of Securities Dealers Automated Quotation System (NASDAQ) or the New York Stock Exchange (NYSE). Companies who are on this exchange system may sell their shares on the open market. You may also purchase stocks that are not on the exchange, but we do not address that in this article.
Investors will have a stock broker that will make all the transactions for them. Brokers will be instructed by their clients to sell or buy stocks. Investors can instruct their brokers to buy or sell a stock when it reaches a determined value. The broker will then find a buyer or seller of the stock. A commission is granted to the broker for these services.
The reason a company sells stock is because they need. A company may want to purchase property, for example, selling stock will give them the capital to do this. The value at which the stock is sold depends on the growth and success of the company.
Purchasing stocks in a new company would be considered risky considering the new company does not have a proven track record. Investing in a company that has been reputable will have a much lower risk factor. Although purchasing stock in a new company that eventually is very successful will yield a great return,
An investor will buy and sell stock through the National Association of Securities Dealers Automated Quotation System (NASDAQ) or the New York Stock Exchange (NYSE). Companies who are on this exchange system may sell their shares on the open market. You may also purchase stocks that are not on the exchange, but we do not address that in this article.
Investors will have a stock broker that will make all the transactions for them. Brokers will be instructed by their clients to sell or buy stocks. Investors can instruct their brokers to buy or sell a stock when it reaches a determined value. The broker will then find a buyer or seller of the stock. A commission is granted to the broker for these services.
About the Author:
Laura Macavoy is a graduate student from Bentley University. She has had many articles published to newsletters on stock market and economy. Laura thoroghly studies economy issues and shares her findings with her readers through numerous blogs. Check out more from Laura as well as many other investment gurus at Mutual Funds for Young Investors
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