A stock (also known as a "share" and/or "equity) is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
A holder of a stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets.
Stocks are the foundation of nearly every portfolio. Historically, they have outperformed most other investments over the long run.
WHAT DOES OWNING A STOCK GET YOU?
Since you own part of the company, you are now involved in some of its management decisions, and you are entitled to some of the company’s profits. Shareholders often get to vote to choose the Board of Directors, to pick independent accountants, to approve any major change in the company like merging with another company. What exactly you are entitled to depends on the amount of stock that you own.
Take the company Apple, for example.
Apple has approximately 5.575 BILLION shares outstanding, so if you owned 100 shares of Apple, you would own 0.00000179% of the company. That seems like a tiny amount, but keep in mind that Apple makes $50 BILLION a year.
You would like to invest in stocks? Check out NAGA Stocks!
HOW DO I TRADE STOCKS ON NAGA TRADER?
- Log into your account.
- Go to the trade screen.
- Choose an option “Add a Symbol” and add your chosen stock to your trading portfolio.
- Click on the added stock and choose “Trade”.
- Decide if you want to trade down or up and then click trade.
Learn more about how to open and close a trade here.
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