What is a Stock?
Often times than not people are often afraid of the stock market because they do not understand what it is or how it works. The most basic element of the stock market is the company’s stock that is bought and sold every day on it. The best method to explain what a stock is would be to refer to it as partial ownership in a company. That is correct when you own stock in a company you are now in the owner’s chair. You are not the full owner, but a part owner in the company. This allows you to both take part in the decision making of the company in the form of voting in the board of directors, and sharing of the company’s profit in the form of dividends if the company pays them. * Please Note all company’s do not pay dividends.* What companies would you like to be part owner of or own stock in?
