Introduction to Stocks
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I choose a text about stocks because I wanted to find out how it works in real life. Nowadays almost everyone has heard about stocks, but many people don’t understand what it means completely. Simply put, it means that you actually own a part of the company. You have a say in how the company is run and you have a claim on the company’s profits when they are paid out in the form of dividends. But ownership in the company is depending on how many of shares you have.
Not all companies have a stock, only certain type of company called a corporation has stock. There are many reasons why a company might choose to become a corporation. Mostly it’s because of “limited liability” concept, more flexible way of ownership structure and several tax implications. …
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