Stocks

Friday, February 19, 2010 10:54 PM by Pradeep Mahananda
STOCKS is the plural form of share.
In the investment world, a share of stock points to a share of ownership in a corporation.
In the plural, stocks and shares in the United state, but rarely used outside of North America
In the United kingdom, South Africa, and Australia, stock can also refer to completely different financial instruments such as government bonds securities.
TYPES OF STOCKS
Stocks are two types they are common stock and preferred stock
Common stocks: common stock typically carries in corporate decisions only.
Preferred stocks: 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 shares: 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.
Sources
During Romen period, the empire gave contract to many of its services to private groups called public.
Shares in public were called and particularly which were analogous to today's Over-The-Counter shares of small companies. Though the records available for this is from Edward Chancellor states in his book devil takes the ghost that there is some evidence that a shares became increasingly widespread and that perhaps the first ever speculative bubble in stocks occurred.
Dr. Edward String also noted that the uses of practices such as short selling continued to occur during this time. This is unusual because it shows individual parties fulfilling that were not legally enforceable and where the parties involved could in a loss.
Shareholder
One share holder or company can have one or more share in a stocks called joint stock.
The largest shareholders are often mutual funds, and, especially, passively managed exchange-traded funds.
Shareholders are considered by some to be a partial subset of stakeholders, which may include who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association that the stock holder, even though they are not shareholders.
Application

The Shareholder rights: Although ownership of fifty percent of shares does result in fifty percent ownership of a company, it does not give the shareholder the right to use a company's building, equipment, materials, or other property. This is because the company is considered a legal person, thus it owns all its assets itself. This is important in areas such as insurance, which must be in the name of the company and not the main shareholder.

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