Stocks represent ownership from "summary" of Loose Leaf Finance with Connect Access Card by Troy Adair,Marcia Millon Cornett,John Nofsinger
When you purchase a stock, you are essentially buying a piece of a company. This means that you become a partial owner of that business. Your ownership stake entitles you to a share of the company's profits, as well as a say in how the company is run. As a stockholder, you have the right to vote on important company decisions, such as electing the board of directors or approving mergers and acquisitions. Your vote is proportional to the number of shares you own, so the more shares you have, the more influence you wield. In addition to voting rights, owning stock also entitles you to a share of the company's profits. When a company makes money, it can choose to distribute some of those profits to its shareholders in the form of dividends. These dividends are typically paid out on a regular basis, providing stockholders with a steady stream of income. Furthermore, owning stock gives you the opportunity to benefit from the company's growth and success. If the company performs well and its stock price rises, the value of your investment will increase. You can then choose to sell your shares at a profit or hold onto them in the hopes of further gains.- Owning stock is a way to participate in the success of a company and potentially reap financial rewards. It is important to carefully research and choose the right stocks for your investment portfolio to maximize your returns and achieve your financial goals.
