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Basics of Stock Investing
Whether you are beginning investing in the stock market or an old hand, knowing and sticking to the basics of stock investing is always a good idea. So, what are the basics of stock investing? The basics of stock investing are that you are buying shares in the ownership of a company. You do not have the right to run the company but you can vote your shares on major company issues and help elect a board of directors once a year. You are not personally liable for company debt or actions and if the company goes bankrupt your claim on the assets of the company is less than that of creditors.
Companies sell stock and give away partial ownership in order to avoid debt repayment and interest payments. The benefits of stock ownership are the receipt ofdividends and the appreciation of the value of your shares of stock. Over years and decades stocks in American stock markets have substantially outperformed bank interest as well as government and corporate bonds.