Shares/Stock Buying shares in a company to get part ownership

[greenieS]

We probably have people here who own a business or bought shares in a company. When you do this, what do you think: do you want to have full authority or do you just want to own part of the company and get paid for it?

I mean, I'm sure everyone invests to make a profit within a certain time frame, but do you have any other claims from that company to be offered certain rights?

 

[Alexandoy]

The shares of stocks is part ownership of the company which means when you buy stocks of a corporation then you become an owner of that corporation. The basic benefit that an owner gets from the corporation is the dividend that is usually distributed by the end of the year. The stocks that I received in November had already earned me a cash dividend that was credited to my bank account by December 29, 2021. It was a great feeling to earn the dividend no matter how small (only $50). That is like a passive income that motivates me to further buy stocks of the same company. However, we have to understand that owning shares of stocks is an investment that cannot be expected of a big profit. The price in the market would go up and down until such time that you decide to sell your stocks to regain your investment. That is the reason why traders would sell when the market price is high because that high price may not come back anymore.

 

[Caramelle]

Shares represent owners' equity in a stock corporation. Since there are many people holding shares in a corporation, top-level decision-making is done by the entire shareholders through the board of directors they have elected. The more shares you have in relation to the entire authorized shares, the more influence you will have in the election of the board and in the decision-making process. The board members receive basic compensation and may be awarded fees for attending special meetings.

Dividends are excess profits that are distributed to the shareholders based on the number of shares they are holding as of the time of declaration of shares. It is safe to invest in blue chips stocks because they are reputable and financially stable. Their stockholders can expect to be paid dividends on a regular basis. However, that is not to say that it is 100% safe. It is still subject to the vagaries of the stock market and the overall business environment. Non-blue chips stocks carry more risk and may or may not pay dividends even though they have earned profits in a given year. Their board of directors may decide to reinvest these profits in expansion or capital expenditures leaving nothing for distribution to their shareholders.​