What's the stock market? (where many people with suits are walking around and waiting for something?)?
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04-04-2014, 03:40 AM
Post: #2
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Yes, the stock market affects the entire global economic system. Buying stock is like investing in a company, say you buy a share of stock for $5 and the company makes a billion dollars, your share is now worth more, and you can sell it back, or to somebody else and make money off of it.
A stock share is literally like owning a portion of that company, if you own more than 50% of a company's stock, you now own that company ( I think). So companies only sell out certain ammount of their total stock. If you own a certain percentage you can vote on policies and activities of the company, like a chairman in some ways. If a company's stock goes down to 0, then the company is not worth anything and they are most likely bankrupt at this point. A company will sell stock when they are beginning to get big to give them some support money to accomplish their goals. For example say that a company worth $10,000 splits up 100 shares of stock and then sells 40 shares, each of those shares are worth $100, so they just made $4000 on nothing, however they have to buy them back if at any time nobody wants that stock. Ads |
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What's the stock market? (where many people with suits are walking around and waiting for something?)? - 108 - 04-04-2014, 03:26 AM
[] - Timothy - 04-04-2014 03:40 AM
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