| Stock is part of the three general financial assets | | | | before any dividends can be paid to owners of |
| alongside money and debts. Money is issued by the | | | | common stock. |
| federal government as paper currency and coins and | | | | Stock market |
| by some financial institutions as demand deposits or | | | | Stock markets are also known by many as stock |
| even accounts. | | | | exchanges, the organized stock exchanges are in |
| Debt is issued by practically every one including | | | | themselves a way to bring buyers and sellers of |
| governments and with calculated moves, issuing | | | | stock together where as stock brokers are financial |
| debts can easily increase someone's assets and | | | | institutions that buy and sell securities at the orders |
| wealth. On the other hand, stock is issued only by | | | | of there customers. |
| business firms, the issuer of stock sells ownership of | | | | How you will get rich from stock |
| the cooperation and it's a better chance for any one | | | | Acquiring stock in a right firm can change your |
| to be part owner of a large company. | | | | fortune within a short time, below are some of the |
| A stock holder | | | | reasons which can lead to that to your increase in |
| A stock holder is who owns or buys shares or stock | | | | financial freedom. Stock acts as saving and as |
| from a firm, a stock holder is supposed to get profits | | | | savings grow, your wealth increase. When the quality |
| once the claims of debt holders are satisfied. The | | | | of stock grow, your income also grows in the same |
| exact amount of money to be paid is not spelt out in | | | | direction. You can always re sale all or part of your |
| advance as it is in case of debt. Thus the shareholder | | | | shares in case there value increase, for example if |
| of a firm receives income from the firm only after its | | | | you own about 10 shares at 100 and the value of |
| creditors are paid what is owed them. Therefore, if | | | | each share grows to 500, you will be able to re sale |
| you buy shares, you will always be assured of some | | | | your shares at 5000 yet you bought then at 1000. |
| money when ever the company makes profits. | | | | You can use your shares as security in many major |
| Types of stock | | | | banks as security for a much needed loan. |
| There are majorly two types of stock, first the | | | | Conclusion |
| common stock and then the preferred stock. | | | | Buying shares will help you to be a part owner of |
| Common stock is the security that represents the | | | | even large companies and in case the share value |
| ownership of the corporation. The owners of the | | | | increase, your wealth will also increase. However, you |
| common stock of a firm are the owners of that firm. | | | | should always take care not to buy shares from a |
| The more shares a person has, the greater the | | | | bad performing firm as that may result into a misuse |
| extent of ownership. For example, owning 100 shares | | | | of your money except when all signs of effective |
| out of the 1000 shares in common stock makes you | | | | speculation show that that particular firm may |
| the owner of 10% of the firm. Preferred stock is not | | | | experience an upward trend in growth. Always get |
| so much significant like common stock in terms of | | | | advice from an experiences broker before you buy |
| amount outstanding and as a method of financing. If | | | | share. |
| you own preferred stock, you will be paid dividends | | | | |