Stock is essentially a small part of any company. Firms sell stock to raise capital for further investment or to get a company started. Without this method of raising capital, many companies would not be able to experience a high level of success or even get started.

6. • The more stock or “shares” you hold
in a company, the more you own of
it and the greater your influence
• A shareholder that owns more than
50% of the stock of a company is
often referred to as the controlling
interest
• This means that major decisions can
often not be made without the
approval of this party

7. • The controlling interest may not be
an individual either. Often a
controlling interest is held by a
holding company, investment group,
or larger corporation
• Budweiser may be the most popular
beer in American, but in reality, it is
owned by a much larger group
known as InBev
• This means investors in Inbev hold
stock in Budweiser and all the other
brands owned by them

8. • Proof of ownership of stock used to be
represented by a paper certificate
• But in today’s modern age these
certificates are kept electronically.
• In fact, most investors never see an
actual physical stock certificate
• This is good in some ways because paper
can be lost or destroyed
• Even if there is a paper certificate,
there is always an electronic back up of
this document

9. • One reason investing in companies via
shares of stock is so popular is that
investors can get the benefits of returns
without having to take on any of the
financial responsibility or criminal liability
• This means that an investor can only lose
the initial amount invested and no more
• This risk makes it easier for investors
to justify taking the leap of faith and
investing in a new and upcoming company

10. • Liquidation is usually a last resort for a
company to make
• A lot of investors sell out before this
happens, this is one reason it is important
to stay on top of financial news and events
• If you are invested in a stock and it starts
losing, then you may want to consider
selling so that you can maintain your
maximum number of assets

11. • There are many reasons why a
company may decide to increase the
amount of shares to investors
• If a company is doing well and wants
to expand to another location or
market, they may need some capital
to finance this and grow the company
and increase profits

12. • Start up companies can offer the best
returns in some cases because they have
the largest potential for steep rises in
value but the highest risk
• A lot of great ideas get popular due to
investors taking a chance on an up and
coming entrepreneur
• This is one of the only ways for some
companies to gain the capital they need
to get started and grow as needed

13. • A company that offers stock for the
first time is referred to as an initial
public offering
• This is often when stock prices are
lowest and savvy investors can get in
on a solid investment with less money
• The risk for these stocks is often seen
as very high, so the prices have to be
low enough to accommodate this level
of risk and entice others to have
confidence in a company

14. • Over time some stockholders may gain
more power if the company invested
in gains more assets within a firm
• For example, if you are invested in
company X and they acquire more
shares in company Y then you may
gain more privileges
• This is totally dependent on the firm
you are invested in

15. • The controlling interest in a company
can change over time
• It is important to keep up with who or
what corporation has the controlling
interest in any firm you are invested in
• The values and practices of those
firms you are invested in can reflect
back on you in either positive or
negative ways

16. • Creating a portfolio is important
because it can help you achieve your
long-term financial goals and provide
for your family, so they have a
comfortable lifestyle
• Stocks are often part of a smart long-
term plan regardless of who you are.
There are stocks that can help provide
a small income over the years as well as
those that may show greater returns

20. http://investedreviews.com/what-is-a-stock-anyway/