Buying stocks

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A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value in case of liquidation. The terms share, equity and stock mean the same thing and can be used interchangeably. Equity is a share in the ownership of a company. It represents a claim on its assets and earnings. It is the certificate of ownership of a corporation. In simple terms, when you invest in a stock or trade stocks online, you own part of a company. Thus, as a stockholder, you share a portion of the profit the company may make, as well as a portion of the loss. If they keep on doing better, your stocks will increase in value and yield higher dividends. Dividend: A sum of money, determined by a company’s directors, paid to shareholders of a corporation out of its earnings. purchase shares