What is a Stock?

A stock is a small share that represents a partial ownership of a company. Stocks are issued by companies in order to raise capitals and are bought by investors in order to acquire a portion of the company.

Even a small share of the company will give the investors the right to have a say in how the company is run. Although they gain a portion of the company’s profits, investors do not carry an obligation to the company in cases of defaults or lawsuits.

Stocks are issued by companies to raise capital. (Source)

Picking individual stocks requires hard work, discipline, and an investment of time. Expecting to make a large amount of money with only a little effort is like expecting to shoot a great round of golf the first time you pick up a set of clubs. There’s no magic formula, and there’s no guarantee of success.

That’s the bad news. The good news is that the basic principles of successful stock picking aren’t difficult to understand, and the tools for finding great stocks are available to everyone at a very low cost – you dont need expensive software or high-priced advice to do well in stock market. All you need is patience, an understanding of accounting and competitive strategy, and a healthy dose of skepticism. (Source)

More coming up.

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