Investment Glossary
Stocks -
Stock may be simply defined as pieces of ownership in a company. When a
company needs to raise capital it sells of portions of the percentage of
ownership of the company to investors. Companies may use the money it raises
for building expansions, new locations, re-locations, acquisitions, or a large
variety of other uses.
As a part-owner in the company your stock entitles you to assist in the
direction of the company. Stockholders get to participate in voting on key
company issues, with the weight of their vote based on the percentage of the
company owned. Savvy business owners will never sell more than 49% of their
company so that they contain "controlling interest" and may never be outvoted
in decisions.
