Posted on / Business and Finance

People Need To Know What Stock Means Before They Try To Invest In It

Stock investment, which has recently begun to be targeted by many novice investors, has made many people have a high degree of curiosity about stocks. Similar questions about what stocks are and also the advantages and disadvantages that may be obtained are things that are much sought after by ordinary people who want to learn about investment and stocks, and you can read more at alphabetastock.com right away.

The question of what stock is one of the questions that often arises in the minds of ordinary people who are starting to recognize investing. How not, shares are one of the most talked-about by the public, especially business people and employees. Shares that are proof of ownership of a company become a claim on the income and assets of the company. Companies whose shares can be purchased on the Stock Exchange are called Listed Companies. Stock is also one of the capital market products, which is one of the long-term investment instruments. By buying company stock, we become the owner of the company.

Shares are purchased in units known as lots. One lot of shares is equal to 100 shares. This means that when you buy 1 lot of shares, you have 100 shares. When you want to buy 1 lot of shares you have to prepare enough money to be able to buy 100 shares.

Investing in stocks also provides benefits for investors. The profits obtained from investing in stocks are called dividends and capital gains. These two advantages have different definitions. Dividends are the profits obtained by investors from the profit sharing of the company, while capital gains are the profits obtained from the increase in share prices.

But on the other hand, investing in stocks can also suffer losses. The loss or risk from investing in shares is capital loss and risk of liquidation. A capital loss is a loss experienced due to a decrease in share prices. Meanwhile, the risk of liquidation can be experienced by investors when the company goes bankrupt.

Leave a Reply

Your email address will not be published. Required fields are marked *