Stock Market Information

Simply stated, a stock is a share in the ownership of a company. Stock (aka shares or equity) is a shareholder’s claim on the corporation’s assets and earnings. The more stock acquired, the higher the ownership stake in the company.

Every shareholder does not have the right to tell the company’s CEO how to run the business. Rather, each share of stock is allowed one vote to elect the board of directors who will oversee the running of the company.

Stock is traditionally represented with a stock certificate, a piece of paper denoting ownership, and once could only be traded in person. Today almost all stocks are kept electronically “in street name" by a representing brokerage firm allowing for quick and easy trading at the click of a mouse or over the phone.

The reason most people get involved with stock investing is the potential for a great return on investment. There are two main avenues for taking advantage of stock investing gains.

• Dividends are a distribution of a portion of a company’s earnings to share holders. Dividends are quoted as either a dollar value per share or a percentage of the current stock market price. Great stock market picks can often become great income generators through their high dividend yields. Not every company offers dividends to its stock holders.
• Open Market Trading. If a company does not offer regular dividend yields to its share holders, the only other way to realize gains through the stock’s growth is by trading on the stock market for the best possible price available. The ins and outs of how and when to buy and sell is learned over time through research, expert advice, and experience. A1stockpicks.com offers hot stock picks daily for our members.

An important and appealing feature of stock is that the maximum loss the shareholder ever assumes is the value of the original stock investment. Shareholders can not lose more than their original purchase price. Stock holders are not personally responsible for assuming company losses or paying debt.

As with so many things in life, successful stock investment requires a good understanding of basic principles. Choosing a few stock investment options and the best stock to invest rather than ‘putting all the eggs in one basket’ is another fundamental of stock investing. Combine this with expert stock advice from experienced online stock investment professionals and the stage is set to start building real and lasting wealth.

A1stockpicks.com encourages your questions at CEO@a1stockpicks.com and answers every email promptly. Get ready to start investing and sign on for our hot stock pick service today and find the best stock to invest in.