If you invest in a company on the stock market and own stock. Do you get any kind of profit sharing.?
I am 18
I want to buy stock in a Company.
I want to know if you get any kinds of perks.
I want to know if there are any stocks that will jump high
with a big profit margin.
- 1 decade agoFavorite Answer
owning stock is like owning a small fraction of the business in which you invest. the internal economics of this business will reflect on the market price of the individual shares, and if you do the research behind each stock, you will find that you can accurately predict which companies will consistently have increases on their earnings. when earnings increase, more people buy their stock and the price jumps higher. if you own the stock and hold the investment for years, waiting for a good price to sell at for profit, you will make a large sum of money.
as far as perks, the best companies to look for, contrary to popular "stock theory", are not necessarily the ones who pay high dividends. dividends are basically the extra earnings a company has after each quarter which are then distributed equally among each share of the company. that could be considered a perk.
as far as a big profit margin, or earning capabilites, check out the consumer products category. coca-cola, pepsico, proctor & gamble, johnson & johnson, colgate-palmolive, kraft foods, and conagra are among some of the companies who own many products which sell consistently well globally. they almost always have great returns on equity, high profit margins, little or no debt, and good retained earnings.
i would recommend reading some books & newspapers before investing though. you need to learn before throwing your money into wall street.
- tompainsbonesLv 41 decade ago
Companies that share profits with share holders do so in the form of dividends. Each stock is written up in what is called a 'prospectus', which will tell you about the history and features of the stock. You can usually find these online. If I knew what stock was going to jump high I would be rich. Buying stock is always a gamble. Right now the market is not doing well. But the good news is that lots of stocks are cheep right now and it's a good time to get into the market if you are willing to be patient.
- ThorLv 71 decade ago
Sometimes shareholders can get perks.
With my Sears Stock financial statements they used to include some rather good coupons. There was a time when the automakers gave shareholders a discount. You could also get a credit card that would put money towards a car.
I think there was a candy company or two that would give shareholders coupons for free candy.
But I can't think of any companies doing any of that stuff at the moment.
We all want to know which stocks will jump high.
And if people do think they will jump high then people will buy them, the price goes up, and it will be too late.
- thomas pLv 71 decade ago
You are only buying shares of stock. Your questions about perks, big profit margin, and price jump suggests that you should wait a few years before committing money to the stock market.
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- 1 decade ago
`Perks` from owning shares come in two main ways.....dividends, and when the price rises substantially (and you only get this `perk` if you are astute enough to sell at the right moment.
Neither is guaranteed to pay off. That is the nature of stocks and shares. Due to the economic downturn, most stocks are `low` and cheaply priced at the moment, and this could be the time to buy.
When economies pick up (if they ever do) you can watch your shares rise.
You sell if you think you are satisfied with the gain/profit.
- 1 decade ago
Some stocks pay a "dividend" which is usually quarterly base on their profitability. As for a stock that will jump high and give you a big profit margin, well you could receive a thousand opinions and not are guaranteed
- Anonymous1 decade ago
By Baytex Energy Trust (BTE). It pays 12 cents a month as a dividend.
- PaulLv 41 decade ago
Read a book on investing before you actually do they will give you the basics, which are crucial.