What is stock? How can stocks?
Users questions:Brief description of the general meaning, but to understand the Thank
Experts answer:What are the characteristics of equity shares to raise capital stocks is when the Corporation in shares issued to the investor certificates. Equity represents the owner (ie shareholders) of the shares of the company's ownership. This is a comprehensive right of ownership, such as participating in general meetings, voting, participation in the company's major decisions. Dividends or share the bonus. The same class of shares represented by each company ownership is equal. Each shareholder of the company ownership of the shares owned by the size, depending on the number of shares held by the proportion of the total share capital. Stock trading in general can be paid by the transfer, the shareholders recover its investment through the stock transfer, but can not require the company to return its investment. The relationship between shareholders and the company is not a debt payment. Shareholders are the owners of the company, with its negative contribution to the company limited to the amount limited only to any, to take risks, share the benefits. Stock is the product of social production, nearly 400 years of history. As a result of human civilization, stock and stock also apply to China's socialist market economy. Companies can issue shares to the public to raise funds for the production and management. State control of a majority stake by the way, with the same capital controls more resources. Currently in Shanghai. Shenzhen Stock Exchange listed companies, mostly state-controlled company. Stock has the following basic features: (l) is not reimbursable. Stock is also a period of unpaid securities, investors subscribed for stock, no longer requires divestment, only to the secondary market to sell third party. The transfer of shares only means changes in shareholders, does not reduce the company capital. From the time point of view, as long as the company exists, it issued shares to the existence of the company stock equal to the survival period of the period. (2) participatory. Shareholders are entitled to attend the Meeting, the election board, involved in major decision-making. Equity holders of the investment will be and enjoy the economic benefits, often through the exercise of shareholder participation to achieve. The rights of shareholders in corporate decision-making size, depending on how many shares they hold. From the practice, however, as long as the number of shares held by shareholders to achieve the necessary results about the actual decision-making majority, will be able to grasp control of the company's decision-making. (3) profitability. With its stock held by shareholders entitled to receive dividends or dividend from the company, access to investment income. The size of dividends or bonus, depending on the company's profitability and the company's profit distribution policy. The profitability of the stock, is also reflected in the stock investors can spread income or realized gain asset value. Buy low and sell high by the stock, investors can earn a profit spread. Coca-Cola stock as an example the United States. If you invested $ 1,000 at the end of 1983 the company buy stock, to July 1994 to 11 554 dollars will be able to market price to sell and earn more than 10 times profit. Inflation, the stock price will reset the original asset as the company increased prices and thus avoid the depreciation of assets. Stock generally regarded as the period of high inflation can be the preferred investment. (4) liquidity. The liquidity of the stock is the stock can be in different trading between investors. Liquidity is usually the number of tradable shares, stock trading volume and stock prices on the trading volume to measure the degree of sensitivity. More the number of tradable shares, the greater the volume, the less price-sensitive volume (price does not change along with the volume), the liquidity of the stock the better, otherwise the worse. Shares in circulation, so that investors can sell their stock on the market to obtain cash. The flow through the stock and the stock price, we can see that people related industries and listed companies for the development prospects and earnings potential judgments. Those in circulation on the market to attract a large number of investors, the stock price rising industries and companies, through issuance of stock, continue to absorb large amounts of capital into production and business activities, has received the effect of optimizing resource allocation. (5) the price volatility and risk. Stock market as a trading partners, with the merchandise, have their own market conditions and market prices. Since stock prices are subject to operating conditions, such as companies, supply and demand, interest rates, mass psychology, and other factors, the fluctuations have great uncertainty. It is this uncertainty, it is possible to make stock investors suffer. The greater the uncertainty of price fluctuations, the greater the investment risk. Therefore, the stock is a high risk financial products. For example, rule the roost in the computer industry in the world International Business Machines Corporation (IBM), when its extraordinary performance, the share price was as high as $ 170, but its position has been challenged, incurred an operating loss of missteps, the stock price has dropped to 40 dollars. If the untimely buy the stock at high prices will lead to serious losses. How the stock market, how to trade stocks when you settle a securities account and capital account card, open the door to the securities business department, constantly flashing on the display screen to see the stock quotation, perhaps you do not know exactly what to stock trading. Well, let me introduce you further. In fact, as a shareholders, you can not directly enter the Stock Exchange stocks, but only through a member of stock exchange trading stock, a member of the so-called stock exchange is often the securities institutions, the brokerage. You can ask the broker to issue instructions to buy or sell stocks, this is known as commission. Password must be commissioned by trading or securities account. It should be noted that, in our Securities and Exchange commission is in effect at the date the legal limit orders. This means investors entrusted to the securities issued instructions to buy or sell shares must specify the name (or code), quantity, price. And this commission is only valid in the day issued a commission. Commissioned by the sale of the stock you want to include short (code), quantity and price of the stock to buy or sell. Usually four to short the stock in three characters, the stock for the six-digit code, to purchase or sell short when the stock code and must be consistent. Meanwhile, stock trading, there is a certain number of requirements: that the number of shares entrusted to buy the whole must be a multiple of 100, but is entrusted to the number of shares sold may not be the whole 100 times. There are four ways commissioned: one delegate counter delivery, telephone automatic delegate, delegate, and remote terminal computer automatically commissioned. 1. Counter delivery is that you bring your own single commission identity card and account cards, set up funds to your account fill in the securities business department counter the power of attorney to buy or sell stocks, and then reviewed by the staff of the counter after the execution. 2. Computerized automatic delegate is your hall in the securities business department computer to buy or sell shares in person enter the code, quantity and price, by the computer to run your delegate command. 3. Phone automatically dial the telephone commission is funding the account you set up the counter securities business department commissioned the telephone system automatically, using the phone keys to enter numbers and symbols you want to buy or sell the stock code, quantity and price in order to complete commission. 4. Remote Terminal commission is your counters with the Securities and networked computer systems to issue a remote terminal or the Internet to buy or sell order. In addition to counter delivery method is a single delegate counter staff to confirm your identity, the other three kinds of ways is through the commission of your trading password to verify your identity, so be sure to take good care of your trading password, in order to avoid leakage, to Your unnecessary losses. When the confirmation of your identity, they put a commission sent to the matching host computer trading exchanges. Exchanges bring together host the legality of the received test commissioned, and then press the bidding rules to determine the transaction price, the automatic price matching transactions, and immediately send the results to the securities dealer, so you can know whether the commission has been traded. The commission can not be traded by the "price priority and time priority" principle in the queue with the commission came after the transaction. Day, the commission can not be traded automatically expire the next day with more than one way to re-commissioned. Shanghai and Shenzhen Stock Exchange trading hours are Monday to Friday 9:30 am to 11:30 am and 1:00 pm to 3:00 pm. Except statutory holidays. I suggest you go to the Exchange a few days to familiarize yourself with the stock name and code, K line shape, trading procedures, etc., some common-sense question to ask around casual investors, they are very patient to you to explain. Risk to the first place, to set a good investment philosophy is very important. In fact, stock trading is very simple, but good speculation is not easy.