Monday, February 25, 2013

What are Stocks?

So this is my first blog so i am going to explain what stocks are!

What are Stocks?
A stock is a share of the ownership of the company.
As the owner of the stock the stock holder.
So he is the base of the essets and stocks
So imagine brad wants to start a company like Amazone or whatever.
He needs about 50.000 $ but he only got 40.000 $ and he doesnt want to rent it from the bank you gonna sell stocks so 10 people will give you 1000 dollar a stock each. 
Now Brad can start his company a year later his company is worth 100.000 $ 
So the people who bought stocks are now more expensive they can sell them to other people to get profit.
Or they will hold them in the hope its gonna be more expensive that means more profit.
So that are stocks i now my english is not so great but that is because i am dutch.




A nice video about stocks

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