shares are units of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's.
A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Shares can be voting or non voting...meaning they either do or do not carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the value of the share.
2007-08-04 04:03:27
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answer #1
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answered by El Maestro 1
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Common Stock
Most shares of stock are called "common shares". If you own a share of common stock, then you are a partial owner of the company. You are also entitled to certain voting rights regarding company matters. Typically, common stock shareholders receive one vote per share to elect the company's board of directors (although the number of votes is not always directly proportional to the number of shares owned, ). The board of directors is the group of individuals that represents the owners of the corporation and oversees major decisions for the company. Common stock shareholders also receive voting rights regarding other company matters such as stock splits and company objectives.
You can read all about stock basics at the 1st link.
Capital Markets are Markets where capital funds-debt and equity-are traded. Included are private placement sources of debt and equity as well as organized markets and exchanges. It is a trading center for long-term debt and corporate stocks. The New York Stock Exchange (NYSE) which trades the stocks of many of the larger corporations, is a prime example of a capital market. The American Stock Exchange and the regional stock exchanges are also examples. In addition, securities are issued and traded through the thousands of brokers and dealers on the Over-The-Counter market. The capital market provides financing to meet the denomination, liquidity, maturity, risk (with respect to credit, interest rate, and market), and other characteristics desired by those who have a surplus of funds and those who have a deficit of funds. The capital market as a whole consists of overnight to long-term funding. The short to medium end of the maturity spectrum is called the money market proper, and the long end is identified as the capital market. The financial instruments range from money market instruments to thirty-year or longer bonds in credit markets, equity instruments, insurance instruments, foreign-exchange instruments, hybrid instruments, and derivative instruments.
You can read more about capital markets at the 2nd link.
2007-08-02 10:58:44
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answer #2
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answered by Sandy 7
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Look! people take one semester courses to understand the financial system and you want it free and in brief? You got a hope!
2007-08-03 08:32:11
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answer #3
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answered by wind 4
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hi check the below link its useful
http://workathomeandearnmoney.blogspot.com
.
2007-08-04 05:56:03
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answer #4
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answered by gracy s 1
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