When you buy a share of stock, you are then one of the owners of the company.
The company's equipment, inventory and land belong to you. The company’s employees including the board of directors work for you. The board makes the major decisions about the company for the owners. Each year there is an election and you can vote for members of the board and for special rulings; one vote for each share that you own.
The company’s profits also belong to you. The board of directors decides what to do with its net earnings.
►Some or all of the earnings may be given directly to the shareholders and this is called a dividend. They just mail you a check or send the money to your brokerage account. This makes the price of the stock decrease by the same amount as the dividend, so you have the same value in the total of stock and dividends.
►Some or all of the earnings may be re-invested in the company so it can grow, open new stores or make repairs. When this is done, the earnings money is used up but the company is more valuable by that same amount.
The per share price, having increased because of the earnings, retain that increase when the earnings are re-invested in the company.
Since the company has reinvested its earnings in itself, it has grown and can earn more money next year than last year.
You are also protected when you own stock. For instance, if your company gets sued and must pay more than it has, the law cannot come to you, one of the owners, and confiscate your house or other property. The value of the shares may decline until they become worthless, but that is all you can lose.
How can you cash in on the potential growth that penny stocks have to offer? Learn here https://tr.im/47mEO
There are three things you'll want to look for when picking a penny stock to make sure that you don't get penny stuck: Underlying business, financials, and footnotes.
When it comes to penny stocks, a company's underlying business is even more important than it is in exchange-traded stocks. That's because the penny stock world is home to "shell" companies that are legally incorporated, but don't have any business operations
For common stock, you buy equity in the company which entitles you to any dividends the company announces, and the ability to sell the stock for the listed price. Investors typically buy stock for two reasons: 1) the dividend; and 2) the growth potential of the stock.
Buying shares of any company is giving the company your money to use with the understanding that, if they make a profit, you will get part of that profit.
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When you buy a share of stock, you are then one of the owners of the company.
The company's equipment, inventory and land belong to you. The company’s employees including the board of directors work for you. The board makes the major decisions about the company for the owners. Each year there is an election and you can vote for members of the board and for special rulings; one vote for each share that you own.
The company’s profits also belong to you. The board of directors decides what to do with its net earnings.
►Some or all of the earnings may be given directly to the shareholders and this is called a dividend. They just mail you a check or send the money to your brokerage account. This makes the price of the stock decrease by the same amount as the dividend, so you have the same value in the total of stock and dividends.
►Some or all of the earnings may be re-invested in the company so it can grow, open new stores or make repairs. When this is done, the earnings money is used up but the company is more valuable by that same amount.
The per share price, having increased because of the earnings, retain that increase when the earnings are re-invested in the company.
Since the company has reinvested its earnings in itself, it has grown and can earn more money next year than last year.
You are also protected when you own stock. For instance, if your company gets sued and must pay more than it has, the law cannot come to you, one of the owners, and confiscate your house or other property. The value of the shares may decline until they become worthless, but that is all you can lose.
How can you cash in on the potential growth that penny stocks have to offer? Learn here https://tr.im/47mEO
There are three things you'll want to look for when picking a penny stock to make sure that you don't get penny stuck: Underlying business, financials, and footnotes.
When it comes to penny stocks, a company's underlying business is even more important than it is in exchange-traded stocks. That's because the penny stock world is home to "shell" companies that are legally incorporated, but don't have any business operations
For common stock, you buy equity in the company which entitles you to any dividends the company announces, and the ability to sell the stock for the listed price. Investors typically buy stock for two reasons: 1) the dividend; and 2) the growth potential of the stock.
Buying shares of any company is giving the company your money to use with the understanding that, if they make a profit, you will get part of that profit.
You own part of the company, they provide investors detailed info.
A piece of the action.