| With numerous magazines, online sites, and cable | | | | Buying stocks in any given company does not entitle |
| channels devoted to the investment instruments | | | | you to a say in the way the company is run on a |
| commonly called stocks, it is no wonder that more | | | | day to day basis. It does, however, entitle you to a |
| and more Americans over the last several decades | | | | vote at any shareholder's meeting - in which you can |
| have decided that buying stocks is a good way to | | | | vote to retain or remove the management of the |
| invest their money and prepare for the future. Even | | | | company if their performance is not making the |
| during a bear market such as the one we have just | | | | company profitable. For small investors, however, this |
| experienced, many small investors manage to | | | | vote is a mere formality; the decisions on |
| maintain their confidence that their stock portfolio will | | | | management personnel are made by those with the |
| eventually increase in value - and history supports | | | | majority of the shares in the company. |
| that belief. If you are thinking about buying stocks | | | | Nevertheless, running the company is not most |
| for the first time, however, an understanding of the | | | | people's reason for buying stocks. The entire purpose |
| basic nature of stocks is a helpful method for | | | | of buying stocks is to invest your money into a |
| ensuring that you know what you are buying into. | | | | company that - should it realize a profit - will return |
| Buying stocks is the means by which you invest in, | | | | your investment in the form of a cash dividend. |
| and obtain some degree of ownership in, a particular | | | | Profitable investment lies at the foundation of every |
| company. A stock is simply a share in a company's | | | | stock purchase strategy. |
| ownership, and entitles you to a claim on the assets | | | | When buying stocks, keeping in mind the investment |
| and profits of the company. Obviously, as your share | | | | aspect of your purchase can help you to better |
| of the company's stocks grow, so too does your | | | | manage any uneasiness you may have with respect |
| ownership percentage. Thus, someone who owns | | | | to the inherent risk involved. Never invest more than |
| 100 shares of stock in a given company has ten | | | | you can afford to lose, and always invest with an |
| times the ownership of a person who owns 10 | | | | eye toward the long term future. |
| shares. | | | | |