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Monday, May 25, 2009

Introduction with Stocks

Introduction with Stocks

Have you ever thought to have a business? Just say you want to have a business as a shop. What can you do to be able to have a store?

If you have capital, you can buy or rent a building and purchase items that will be sold. If your store is still new, of course there are certain risks, such as your store is not yet famous. That is, have not visited your store a lot of buyers.

Then, as an alternative, why not try to buy other stores that have been first established? You can be promiscuous shop where you want to buy, and of course you will choose a shop that seems to be enough known and in demand, is not it?

If so, then the money you should pay to the old shop owner is usually worth the price (if the building is owned stores) and goods sold therein. In other words, you have to buy store ownership, in which you buy is the capital.

Small Fractions

In the business world not only shops that can provide benefits. Business that does not also shaped many shops that can profit. Business is usually in the form of agency business, or in other words; the company. Same with the stores, company ownership can also be purchased. So you can choose the company which is approximately always profitable in the year-ago month, and you can buy ownership (capital) of the company.

Different from the store, generally a company's capital far more than the capital of a shop. For example, the capital's shops you want to buy may be US$ 3,000 but the capital of the company that you want to buy can only reach US$ 30,000.

The problem is, not all people have the cash in US$ 30,000. Maybe people only have US$ 300, so this means he only get the ownership of only one percent of all values of the company. But how so that it can buy only the ownership of one percent of that?

By law, ownership of the company divided into the fraction fraction-called small shareholders. For example, the ownership of a company worth US$ 30,000 earlier divided into shares in a stock rated say 0.1 cent. Thus, if you only have US$ 300, then you can only buy 3000 stocks.

Benefit Buy Stocks

The advantage is that you will get by buying shares or ownership of a company?

1. If the company hit (return), then you usually get the benefit of the so-called dividend. Take an example, if the shares of a dividend you receive 0.01 cent per sheet, 3000 with the shares you own, the total dividend you get is US$ 30. Of course the sizes of the benchmark dividend differ between one company with other. The more shares you have, the larger the dividend if you can hit the company.

2. Second advantage, can only increase the value of your shares. Example, we return you to buy shares at 0.1 cent. Well, then when more and more who want to buy the company stock, then stock prices may have increased so say 0.14 cent per sheet. Thus, when you sell it, this means you get the benefit of 40 percent. Benefits such as this are called capital gain. Where you sell the stock? Not to the company that published the shares concerned, but on the other people who really want to have these shares.

Of course, investment in the form of shares is also at risk. That is, the decline in stock prices that you have. Example, 0.1 cent down per 600 shares. When you sell, you will be loss of 0.04 cent per share. Losses like this always called capital loss. Where you sell it? Also to others who really want to have these shares.
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