Equity Shares

So what does this really mean? It means if a company puts their stock up for sale on the market you can buy a partial ownership of the company. Your portion of ownership depends on the amount of shares you purchase in a particular company. When you purchase a share of the company you own that percentage of everything the company owns and makes and can have a decision on the company. The two most common types of stock are common, the typical traded stock that everyone is use to and comes with voting rights, and preferred, doesn't usually come with voting rights and typically offers some form of guaranteed fixed dividend forever. Features of stocks are easy to buy and sell, no guarantee of return, may make huge profits fast or lose value just as quick, requires monitoring. Stocks are traded on "The Market", meaning they have to be bought and sold through a stock market. With regulations just anyone can't buy or sell on the market, it has to be a licensed broker to carry out the transaction. Stock buying and selling can take a lot of time and research to make the most profit. If you can find a broker, you trust they can really help you with your investment. Stocks are one area of investment, more so than bonds, you need to be sure you can stand to lose the money if the market doesn't work

The common stock is a security that represents ownership in a corporation. It is calculated below.

Investment in shares of corporate stock is also very popular that can produce a great amount of profit. By investing in shares of a firm listed on a stock exchange, the investor owns part of the company and also gets the right to share in the future income of the company. Returns on stock come in two ways; first, dividends are paid out of the profit accumulated by the company over a year. Secondly, the investor can sell his or her shares of stock for more than originally paid. Gains may reflect that the company over time has grown or improved or that the investment society sees future prospects. But then capital losses can also occur. The price of shares listed for a company can vary from day to day. On a given day some shares may go up in value and some may go down in vale, depending on how investors view the prospects of each company. Also rises and falls in economic confidence or changes in a particular industry may cause the value of stocks to rise or either fall. There are ranges of factors, which influence stock prices on a daily basis stocks cannot be accurately predicted. Shares of stocks are riskier than

A new venture takes creativity, motivation, spirt, and capital. The beginning of any venture begins with analyzing ones financial markets and how best to place the vested capital to continuously have the company grow. In many aspects one may purchase an already established business, in this case the understanding of how the loan process works is imperative. One may purchase a building and start a business from the ground up, in this case one will also need to have a great understanding of how mortgages and lending works as well. Many lenders will look into the financial market of the business before considering a loan of any type. In this case good solid numbers and record keeping is important. Understanding that a financial market is based on traders who buy and sell stocks, bonds, derivatives, foreign exchange and commodities (Amadeo, 2015). Successfully analyzing and investigating all financial resources is crucial.

When you buy stock you are purchasing a part of a corporation. The ownership of the corporation is divided into shares of common

The correct way to fund a business depends on the size, (ex small, medium, large) and type of my business (ex online, manufacturing, services). You can crowd source which involves asking publicly on websites such as Kickstarter. Go to a bank or any other lender and ask for a loan which you will have to pay interest on. Lastly you can take the tried and true method of asking family to give you money or use your own assets. For the purpose of this essay I will say that I am trying to start up my own cookie shop. Because it is a small business, it should not cost me enough money to warrent issuing stocks which would involve appealing to individual investors and potentially loosing control of the company that I just created. The store, employees,

The management of a corporation issues a predetermined amount of stock shares to investors. After these shares are issued, the investor has the right to sell all or part of their shares of stock to outside investors. Management does not become involved in the transfer of the stock. The transfer of stock does not affect the operation or function of the corporation.

If I don’t have the enough money to keep my company going for the first few months until I start to turn a profit this will spell the end of my venture. This is a real issue for me because my core employees are going to expensive to pay because I need them to be experienced. I might have to not hire as many employees as I have originally planned for to try and avoid this issue. This would lead to me taking on more roles as the CEO, which could lead to added stress. Which could also be a reason for the failure of the venture. To prevent this I also could look into ways to try and save money by doing things such as getting employees to work from home so I could downsize the office space needed for my company. Also I could ask investors give me their investments in installments rather than lump sums. This would ensure that the money is continuing to come in regardless of whether my company is turning a profit yet.

A small business that I have in mind to start is Hair, Nail and Beauty Salon Business. I am considering having a private investor help me start up the business. I have made my business plan and he is happy with it. The Business will cost me around £150,000 to start up, which would include getting the place I need for the business and getting everything ready to a high standard. I choose a private investor, which is a capital venture because it is easier for me than having to go the bank to get a loan to start the business, another thing is that having to go to the bank, the requirements are so much that I won’t be able to meet up with which includes giving a collateral, because I have got one to give to the bank. So the best option I have

If a person owns stock, or shares of stock, then they possess an ownership interest in a corporation. The owners will receive dividends when the corporation reflects a profit. All corporations issue common stock, however some issue preferred stock along with its common stock. Stocks can be bought and sold.

Investors play a significant role in enhancing the growth of enterprises all over the world. As the world continue to experience emerging challenges and opportunities, the number of emerging entrepreneurs continues to rise as well. Even though some of these budding businesspeople have a financial base from which they launch their new ventures, a majority do not have identifiable sources of funds. Therefore, this group of unlucky entrepreneurs is always seeking out successful and sophisticated investors who are always willing to invest in new promising start-ups. However, the catch is that the budding businesspeople seeking partners and funding must first and foremost do a pitch, where

Angel investors help people in startup new business. Capital come at cost and for those Angel investors makes arrangement by overcoming these issues. These issues including ownership, rate of return expected from investment and making arrangement of the desired amount. This all kinds of needs are difficult for the new entrepreneur to manage which is then offered by Angel investors. Therefore Angel investor’s helps in defining success for the new entrants by helping them create new jobs, new market, assisting in establishing comfortable size and scale and inventing methods for reaching out to a successful business.

In my business and management course we have learned about how to start business and manage a business in its very basic. One of the main themes that I found interest in this course was the keyword shareholder. The first thing that is important to know when starting a business it its role, the main functions and in what sector your business is going to be in. Also the main reason why businesses are started is the mnemonic GET CASH principle. There are several steps one has to go through when starting a business and the first step us to write a business plan. This means that once someone has feasible a business idea, you must officially formulate your idea into a business plan. The second step is to obtain start-up capital and the third

Stocks (or shares), by definition, are shares of ownership in a company. By purchasing stocks in a company, the investor becomes a part owner, and thereby owns a percentage share of the company’s after tax profits. Stocks/shares have two key characteristics: 1) they can be issued in small denominations: an investor can purchase as many or as few shares in a company as he/ she wants, thereby becoming a

Gittman (2004, pp. 312) divided stock into two types, such as common stock and preferred stock. He also showed that dividends are the outcome of investment. So, common stocks are an ownership claim against primarily real or productive asset (Higgins, 1995), but he also said that if the company prospers, stockholders are the chief beneficiaries, if it falters, they are the chief losers. Smith (1988) presented that stocks are one of the most popular forms of investment. People buy stocks for various reasons: some are interested in the long-term growth of their investment by buying low priced stock of a new company in the hope of substantially growth of share price over the next few years. Another reason he suggested that in a well established firm stockholders expect the stock growth will be stable over the long run. (Smith,1988).