NX! asked in Business & FinanceInvesting · 1 decade ago

What exactly are stocks in the stock market?

Please anwer all if possible:

What are stocks?

How do they work?

What is the stock market?

What are all the companies that i find market doing in the market?

Please, if you can, tell me all there is about stocks, the stock market, etc.

4 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Here's a couple excerpts from Investopedia:

    [About Stocks]

    "A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets."

    [About the Stock Market]

    "The market in which shares are issued and traded either through exchanges or over-the-counter markets. Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance."

    Go to the Source link for a ton of more info.

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  • 1 decade ago

    Stock market can be a great source of income if you can trade wisely. Wise trading means that the investors are guided by wit and knowledge. The trade can be a real hell for the ones who take it as a gambling and go on staking their money randomly on the stocks. If you are making investments randomly, there is a very small chance that you will gain. Frequently, the little that you gain would be consumed in paying fee to the stock broker. Now the question arises, what do you need to know before you trade stocks?

    There are lots of books available in the market that tells you about the shares, the share market and about other related topics. Before stepping into the share market you should read at least a few of them. The Internet also provides you a vast amount of information on every aspect of the stock trade. Such huge amount of the information available can sometimes be confusing to you. But use your brain to judge what, from the information provided, is required for you and rule out the confusing part as undesired. If you want to escape from the pain of acquiring knowledge, investing in the stock market would be just as good as throwing your money into the dustbin.

    The following resources can be great help:

    http://ezinearticles.com/?How-Does-The-Stock-Marke...

    http://ezinearticles.com/?How-Do-The-Stocks-Trade?...

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  • 1 decade ago

    Stock typically takes the form of shares of common stock (or voting shares). As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.

    Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Shares of such stock are called "convertible preferred shares" (or "convertible preference shares" in the United Kingdom).

    Although there is a great deal of commonality between the stocks of different companies, each new equity issue can have legal clauses attached to it that make it dynamically different from the more general cases. Some shares of common stock may be issued without the typical voting rights being included, for instance, or some shares may have special rights unique to them and issued only to certain parties. Note that not all equity shares are the same.

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  • DOG
    Lv 5
    1 decade ago

    Stocks are shares of a company you can buy

    They are proof that you bought them

    The market specifically used for buying and selling stocks at a moments notice

    Selling their stocks or buying theirs and other stocks

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