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Can someone please explain to me what exactly shares and stocks are!?!? And how to use them.....

2007-03-22 14:19:48 · 7 answers · asked by dagabe101 2 in Business & Finance Investing

7 answers

Great question, this is very simple, “Stock” is ownership in a corporation, stock holders own the company (most of the time it is a very small or minority stake) “Shares” are simply the number of units of that stock you own (i.e. 1,000 shares of MSFT) in this case you would own 1,000 units of Microsoft. I hope this helps!

2007-03-22 15:36:58 · answer #1 · answered by bruner89 2 · 0 0

As the owner of a share of stock (a partial ownership stake in a company) you are entitled to a percentage of the company's profits, or to have those profits reinvested in the company in a way that makes the company more valuable down the line.

In a nutshell you buy stocks hoping that the company will make more money in the future and that the stock price will go up, and that it will send you large amounts of money (called dividends.)

2007-03-22 21:43:54 · answer #2 · answered by Adam J 6 · 0 0

Let's say you invented a wonderful new kind of portable "pocket toilet", called the "iPeed", but didn't have the money to make and market the thousands of them you KNOW would sell...you might form your company and take it "public", by selling 100,000 shares at $10 each. This would help you raise the $1,000,000 you needed to build your iPeed factory and churn out a thousand units a week. You'd sell these for $50 a pop, making $50,000 a week, and you might reward you stockholders with a quarterly dividend of a 25 cents a share, so they'd earn a dollar a year for each share they hold ( a 10% return).

Meanwhile, shareholders might feel you are sure to sell more iPeed units next year (there'll be more old people), so your profits are sure to rise, and you'll probably put the dividend up, so they'll bid the price of your shares up...

2007-03-22 14:32:45 · answer #3 · answered by Anonymous · 0 0

Stocks are a small piece of financial interest in a particular company. Shares are the amount of "pieces" you have that change their value day to day.

In other words, say you have 50 shares of Microsoft stock.
That means you have 50 parts of the Microsoft Corporation at whatever value it is at the moment.

2007-03-22 14:29:24 · answer #4 · answered by ipolkadot 3 · 0 0

Stocks are called fast money investments.To Learn more about shares and stock trading check the website link below.

http://www.smart-investments.org/Best-Stock-Investments/How-To-Invest-In-Stock.php

http://money-review-site.com/shares.html

2007-03-22 14:26:53 · answer #5 · answered by Anonymous · 0 0

sure, that your answer is right. All you do would desire to undergo in concepts that a "factor" is comparable to one dollar while people communicate approximately easy inventory. So, in the event that they pronounced Google went up 12 factors right this moment, it ability that the proportion cost greater 12 money. This is going for any easy inventory.

2016-10-01 08:36:40 · answer #6 · answered by ? 4 · 0 0

read tips on investing, stocks and much more to help you better on this site

2007-03-22 15:06:12 · answer #7 · answered by tuff luv 2 · 0 0

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