Mastergp
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Whenever anyone buys a stock or share, he gives out money to the company that has raised the share through their broker. This make you to because a co owner of that firm and your name become stockholder if you buy stock or share glider when what you purchased is a share. Hence ,we describe shares as a small ownership stake one has with the company whose shares are bought. This company is referred as a public company.
As a co owner, you share from the proceeds of that business whenever profit is made and dividend declared. It is just like you depositing money in the bank and the bank give you interest at the end of the day. In the case of shares and stock, you receive higher dividend when more profit is made and you investment increase from time to time as right and bonus issues are made to current share holders.
The money invested in this way can grow when the share price goes up and may decide to sell it at a profit know as capital gain.
As already indicated, you are also entitled to dividend when ever profits made are declared. A loss is in evitable like ant other business, when the shares prices go down, the value depletes and losses ensue.
As a co owner, you share from the proceeds of that business whenever profit is made and dividend declared. It is just like you depositing money in the bank and the bank give you interest at the end of the day. In the case of shares and stock, you receive higher dividend when more profit is made and you investment increase from time to time as right and bonus issues are made to current share holders.
The money invested in this way can grow when the share price goes up and may decide to sell it at a profit know as capital gain.
As already indicated, you are also entitled to dividend when ever profits made are declared. A loss is in evitable like ant other business, when the shares prices go down, the value depletes and losses ensue.
