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Money in Stock Market: Know what it means

This article we have tried to explain the basics to make money in the stock market. If you are planning to invest in the stock market, you MUST read on! We have enlightened all the conceptions and talked about all the “Myths” that people have about the stock market!

Before we proceed further let us know what Stock means? A Stock is a share in a company. A stock signifies a claim on the company's possessions and income. Your ownership in the company becomes greater as you purchase more stocks.

Holding a company's stock means that you have a claim on everything the company owns and as an owner, you are at liberty to share of the company's earnings as well. More money in the stock market means more risk as you not only are eligible to share income only but losses also. Earnings from shares are called “Dividends” and are distributed to the shareholders from time to time.

A “stock certificate” symbolizes Stock. This piece of paper is a proof of your ownership. However, in this day and age you could also have a “DEMAT” account, this means everything can be done though the computer automatically. Now you can buy or sell a stock can just by a few clicks.

Though Having your money in the stock market of a public company does not mean that you have a say in the everyday running of the business but you do have right of one vote per share in elections and can vote for the Board of Directors of a company at annual meetings. In actuality, individual investors do not own enough shares to have a material manipulation on the company. It's really the large institutional investors and billionaire entrepreneurs who make the decision.

The benefit of owning stock is that you have limited liability, which means no matter what, the maximum value you can lose is the value of stocks you own. Even if the company of which you are a shareholder becomes penniless, you will never lose your personal possessions.

Money in Stock Market, Stock Market Invest

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