Common stock is an asset or a liability
One of the main advantages is that shareholders can be associated with large companies and participate in their profits (dividend policy). Owning a share is equivalent to owning a part of a company.
The investor has to take into account in which sector of the economy he wishes to invest, since the stock exchange offers its participants the possibility of investing in the various sectors that make up the economy of a country.
The common shares give you, on the other hand, more rights within the company: for example, they allow you to attend the shareholders’ meetings, where important decisions are taken and where you will be able to vote.
The value of a share may depend on the interest rate, as well as on the growth of the economy, or of a particular sector. In general, if the economy grows, companies earn more money, and your stock will have a higher price. But this is a rule that has numerous exceptions.
To measure or evaluate a stock, investors and economists use a very important tool, the price earning ratio (p/e), which is an indicator of stock value. It allows you to compare the value of the shares of several companies within the same sector. This information can be consulted at MACCHI.
CFDs are complex instruments and are associated with a high risk of losing money quickly due to leverage. 74% of retail investor accounts lose money in CFD trading with this provider. You should consider whether you understand how CFDs work and whether you can afford to take a high risk of losing your money. Options and turbo warrants are complex financial instruments and your capital is at risk. You can suffer losses quickly.
CFDs are complex instruments and are associated with a high risk of losing money quickly due to the leverage. 74% of retail investor accounts lose money in CFD trading with this provider. You should consider whether you understand how CFDs work and whether you can afford to take a high risk of losing your money. Options and turbo warrants are complex financial instruments and your capital is at risk. You can quickly suffer losses.
Definition of common stock A share may be defined as a security representing an aliquot part of the capital stock which confers on its legitimate holder the status of shareholder.Thus, the share has a threefold aspect: ˗
Right of information. The share as a security Article 92 of the TRLSC provides that: “Shares may be represented by means of securities or by book entries. In either case they shall be considered as transferable securities”. Classes of shares a)
A share in the financial market is a security issued by a corporation or limited partnership by shares that represents the value of one of the equal fractions into which its capital stock is divided. Shares generally confer to their holder (called shareholder) rights, such as the right to vote at the entity’s shareholders’ meeting and economic rights, such as the right to participate in the company’s profits.
As an investment, it is an investment in variable income, since it does not have a fixed return established by contract, but depends on the good performance of the company and its decision to distribute profits.
The shares are therefore, it assumes a greater risk of depreciation of the investment made if the company does not make profits, as well as a greater revaluation of its investment if the company makes profits.
In general, unless there are statutory covenants limiting the total control of a company by a single shareholder, in order to exercise control of any company constituted by shares, it is necessary to have the so-called absolute majority, i.e. more than 50% of the total outstanding shares.