October 28th, 2008
Stock Basics – Understanding The Fundamentals
For the purpose of this brief article let me explain what are the stock basics. Generally speaking when you have stock in a company you possess a piece of the company. Basically speaking stock means a partial ownership of the said company you hold stock in.
This would imply a small share of the company and with one stock it would represent the smallest share possible. The simple reason why a company would sell stocks is to raise money or more formally described as capital. As a consequence when you invest in stock you invest in a small share of the company.