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A stock is an ownership share in a business, and literally thousands of them trade on a stock exchange, allowing anyone – even beginners – to become a part owner in the company.
By buying shares of the highest-yielding stocks on the Dow Jones Industrial Average (DJINDICES: ^DJI) market index, you can buy into top-quality companies whose shares are selling at a discount ...
Generally, the most senior employees own a majority stake and represent the leading voice in the company that employs them. They may be required to sell back the shares upon leaving the company. A number of countries have introduced tax advantaged share or share option plans to encourage employee share ownership.
By selling shares they can sell part or all of the company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends .
Buy and Hold: This strategy involves buying company shares or funds and holding them for a long period. It is a long term investment strategy, based on the concept that in the long run equity markets give a good rate of return despite periods of volatility or decline.
Companies can remedy that with a stock split, multiplying the number of shares they have in circulation while simultaneously reducing the stock price proportionately. For example, a 10-for-1 stock ...
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