* The prices of stocks play an important role in the economy of any country. If the stock market is in the uptrend then it shows an improving economy. * If the stock market is in the downtrend then it denotes a declining economy. Share and Enjoy:
Every stock has a name. The name is just long enough to indicate all of the stock’s characteristics. For example, Microsoft’s stock is called Microsoft PV $0.025 common stock. “$” may be confusing, because it has no connection to the value of the stock. Share and Enjoy:
Like money, every stock certificate has a par, or face, value. A share with a par value of one is a basic stock, and a share with a value of five is equal to five basic stocks, just as a $5 bill is equal to five $1 bills. Share and Enjoy:
When a company is founded, the founders can issue (distribute) stock (as mentioned, stock is a certificate that indicates ownership). The founders decide how much of the company each of them will own. For example, assume that three entrepreneurs – Allen, Benny, and John – decide to start a new computer firm, called “A – [...]
A stock is a certificate showing that its holder owns part of a certain company. What prevents somebody from walking into any company’s office and claiming to be the owner? Lack of proof in the form of a stock certificate. Share and Enjoy:
A stock exchange is a market where securities are bought and sold, just as food is bought and sold at a grocery store. Note: The following terms at the next pages will be explained in further expansion later on the course. Share and Enjoy:
