Stocks Essay

Stocks. What are stocks. How do individuals buy and sell stocks. Mutual funds and Exchange trade products. Stocks listing and initial public offerings. Stocks splits and reverse stock splits.

There is presented the meaning of stocks. So, stocks represent some degree of ownership by the stockholder of the corporation that has issued the stock. This ownership gives the right to earn dividends. Simply speaking, the company, which has issued the stocks, pays to shareholder. Also, stocks give the right to vote in corporate elections.

People by investing a capital people hope to gain capital by buying low and selling high.

There was given an example which shoves that investing your money to shares can be really risky, because the value is nots stable and can decline. In this situation you are losing your money

Nowadays stock broking is much easier than in the past because you can use online by trading stocks. In these stocks trading sites you can see all the information about the company you are investing. But nevertheless, person who is going to buy stocks can also talk in person to broker.

With some restrictions, most brokers allow their customers to trade with margin accounts, which gives you the right to borrow half of the value of your stock purchase rather than use only your own cash in the account.