A Short Guide to Stocks and Shares
When an investor buys shares in a company or organization, they effectively buy part of that company or organization, or part of it if you want. Furthermore, the company’s performance will determine the value of shares, and overall investment. Because stock performance is related to earnings, companies that perform well will see an increase in the value of shares, with the opposite effect associated with companies that perform poorly.
Investors in a company are called shareholders, and they receive payments in the form of dividend payments that fluctuate in the company’s overall performance.
Investments in stocks are also known as ‘stocks’ and ‘equity’, and the stock market falls into two separate categories, the primary market and the secondary market.
Company Motives
There is only one reason for companies to sell shares and that is to increase capital to develop it. The company does this in two ways.
Main market
Issuing …