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 entitle...
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