The Uglycow Finance » stock

The Benefits when Buy Stock

admin — Mon, 25 Jan 2010 08:19:46 +0000

What benefits will you gain by buying stock or ownership of a company?

1. The first, if the company had a profit, then usually you get a stock of profits called dividends. Take for example, if the per stock dividend you receive $ 100 per stock, and then by 3000 the stock you have, the total dividends you get is $ 300,000. Of course, the standard amount of dividends varies from one company to another company. But the principle is more or less the same. The more stock you have, the greater the dividend you can if that company profits.

2. The second advantage could be the value of your stock rises. Back we let you buy stock at $ 1,000. Well, if then more and more who want to buy stock, then stock prices may have increased so tell $ 1,400 per stock. Thus, if you sell it, this means you get a profit of 40 percent. Profit is called capital gains. Where do you sell stock? Not to the companies that issue stock in question, but to others who do want to have these stock.

Of course, investing in stocks is risky. Namely, the decline in stock prices that you have. For example, from $ 1000 fell to $ 600 per stock. When you sell, then you will lose $ 400 per stock. Such losses usually called capital loss. Where do you sell? Also to others who do want to have these stock.

What is the stock?

admin — Sat, 16 Jan 2010 17:45:06 +0000

Maybe any of you ask, what is meant by stock? How does it work? Let’s get acquainted.

Have you ever thought to have a business? Let’s say you want to have a business in the form of a store. What can you do to be able to have the store?

If you have capital, then you can buy or lease a building and purchase of goods for sale. If you are new stores, of course there are certain risks, such as your store has not known by the public. This means that you have not visited the store a lot of buyers.

Then, as an alternative, why not try to buy other stores that had already been standing? You can choose to choose which store you want to buy, and of course you’re going to choose a store that seems to have been well known and best-selling, is not it?

If so, then the money you pay into the store owner is usually worth the price of the building (if building is owned their own stores) and the goods sold therein. In other words, you have purchased the ownership of the store where you purchased the capital.

Small fragments
Please note, in the business world not only stores that can provide benefits. There are businesses that do not form too many stores that can provide benefits. Business usually in the form of business entity, or popular terms: the company. Same with shops, corporate ownership can also be purchased. So you can choose which companies about always profitable in the past year, and you can buy property (capital) of the company.

Different from the store, the capital of a company is generally much larger than the capital of a store. For example, the capital of the store you want to buy may be $ 30 million, but the capital of the company you want to buy can be reached $ 300 million.

The problem is, not everyone has cash $ 300 million. Maybe people just have a $ 3 million, so this means he only got possession of one percent of the value of the company’s ownership. But how could so he could buy a property that only one percent of it?

By law, was made a rule: The company’s ownership is divided into small fragments, called the stock. For example, ownership of a company valued at $ 300 million was divided into shares which rated the stock with $ 1,000. Thus, if you only have $ 3 million, then you can only buy 3000 shares.

Buy Stocks

admin — Thu, 17 Dec 2009 17:29:01 +0000

What benefits will you gain by buying shares or ownership of a company?

The first, if the company had a profit, then usually you get a share of profits called dividends. Take for example, if the per share dividend you receive USD 100 per share, and then by 3000 the stock you have, the total dividends you get is USD 300,000. Of course, the standard amount of dividends varies from one company to another company. But the principle is more or less the same. The more shares you have, the greater the dividend you can if that company profits.

The second advantage could be the value of your stock rises. Back we let you buy shares at USD 1,000. Well, if then more and more who want to buy stock, then stock prices may have increased so tell USD 1,400 per share. Thus, if you sell it, this means you get a profit of 40 percent. Profit is called capital gains. Where do you sell stock? Not to the companies that issue stock in question, but to others who do want to have these shares.

Of course, investing in stocks is risky. Namely, the decline in stock prices that you have. For example, from USD 1000 fell to USD 600 per share. When you sell, then you will lose USD 400 per share. Such losses usually called capital loss. Where do you sell? Also to others who do want to have these shares.