| There are a number of different types of | | | | owns shares will have a vote, with each share |
| investment available to today's investor. One of | | | | meaning a vote. Therefore someone who owns |
| these is buying into a company by purchasing stocks | | | | fifteen shares will have fifteen votes. A high |
| or shares. | | | | percentage of shares, and therefore votes, will mean |
| When you buy stocks in a company you are | | | | you can have a significant say in the direction the |
| essentially buying part of the company. You will | | | | business takes. If you own 80% of a company's |
| receive a certain number of shares, depending on | | | | shares then you have more say than everyone else |
| how many you have bought. The amount of profit or | | | | put together. Having this amount of shares means |
| loss a company make will then affect the worth of | | | | you can really be part of the business. |
| your shares. The share value can go up or down, and | | | | Another major advantage in stock investment is that |
| you can sell at any time. So if you sell when shares | | | | it typically out-performs other types of investment. |
| are higher than when you bought them you will make | | | | There is a risk with stocks, though, as shares can go |
| a profit, while if they are lower you will make a loss. | | | | down as well as up. Returns are never guaranteed. |
| There are many reasons why someone will make | | | | There are times when the value of a companies |
| investments. Some would just like to make a little | | | | shares fall dramatically in a short space of time. It is |
| extra money by buying a few shares in a company | | | | therefore important to get out at the right time. If |
| they hope will grow, or continue to grow. Others | | | | you envisage a fall it is best to sell while you can for |
| though, look to make a significant amount and spread | | | | a good price. The best time to sell your shares is |
| their investment around many investment | | | | when they are at their peak. If there has recently |
| opportunities, worth large amounts. This is obviously | | | | been a significant rise in the share price, you then |
| more risky. Some people invest as part of their | | | | have to decide whether to sell and make a good |
| retirement plans. | | | | profit, or risk keeping hold of them and hoping the |
| There are investors who really look at their | | | | rise continues. This could mean massive returns, but |
| investment as more of a project. This may be the | | | | could also mean they fall and your shares loose all of |
| case if they are investing in a company they are | | | | their value. |
| genuinely interested in or believe has a future. They | | | | Investing in stocks is often all about timing. Buying |
| may purchase a number of shares to try and have a | | | | shares just before they have a significant rise can |
| say in the business. | | | | bring an excellent return, but buying them just before |
| That is one of the advantages or owning stock in a | | | | a dramatic fall will have the opposite effect. The |
| company. You have a part to play in decision making | | | | challenge is knowing the right time to buy and the |
| by having a vote on important issues. Normally when | | | | right time to sell. |
| certain decisions are being made each person who | | | | |