Understanding Stock Trading You have to understand stocks before you
understand the stock market and stock investing. Basically, a stock represents
the smallest share of company ownership. Companies issues stocks in order to get
some additional capital and attract new investors that by buying stocks are
actually buying a part of the company. This partial ownership, gives the
shareholders some rights to a say in how the company is managed and how to share
the profits if there are any. What's more, while stocks give owners some
influence on how the company is run, they do not carry any obligation in case
the company defaults, faces a lawsuit or declares bankruptcy. The worst thing
that can happen is the stock becoming worthless.

http://www.blogcharm.com/nettrading/53838/Understanding+Stock+Trading.html



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