Whenever a small business decides to promote stock to i好ividual investors, it does so by dividing the worth from the firm into issues identified as shares. Every single share represents a tiny piece of your organization. While you acquire a share of stock, that you're shopping for element of that business. For example if Company X concerns one million shares of stock, so you get one,000 of those shares, you very own a fraction (in this case, 1/1000) of Enterprise X. An investor purchases shares of stock while in the hope that they will grow in worth over time. The investor can then promote his shares to create a revenue. Shares of stock can go down in worth too, which would result in the investor to shed bucks on his investment.
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