What is a Stock\Share?
Before you start investing your own money in property or banks it is best to know what a Stock is. In simple terms a stock symbolizes a part ownership of a company. For example if a corporation has 500,000 stocks and an investor owns 100 of them, he owns 0.02% of the company. The more stocks you own of a company, a larger percentage you own of that company. Previous to the stock market, companies were owned by individuals. By dividing the company into shares and selling off the shares but retaining more than 50% an owner could still indirectly control a company but share his risk in the ownership. Ownership and control became separated, as companies began to be run by Boards of Directors who may or may not own shares in that company. The people that invest in the Stock Market and buy Shares are called Shareholders or Stockholders. In today’s market if a shareholder owns more than 50% of the company they officially have control over the ownership of that company.
