The Stock Market: A Valuable Gamble

693 Words Jan 30th, 2018 3 Pages
The stock market plays a pivotal role in the growth of the industry and commerce of the country and eventually affects the economy of the country to a great extent. If a company want to raise funds for further expansion or setting up a new business venture, it has to either take a loan from a financial organization, or they have to issue shares through the stock market. Student of the economy should be aware of the value of investmentthrough the stock market, the history of the stock market and its impact on everyday life.
Stocks are considered an equity investment. So if someone or a company invest in a stock, they have an ownership stake in the corporation that issued it, or offered it for sale. Stocks are kind of like pieces of the corporate pie. When you buy and share stocks you own a slice of the company. So why do people buy stock? The corporation’s stockholder or shareholder sometimes involves millions of people and companies. They all have equity in the company as I referred to earlier, or they own a fraction proportion as a whole. They buy stocks because they expect to profit when there company gains profit. There are two different type of stocks; common and preferred stock. Common stock is the most common form of stock. With having ownership of a common stock, a person can exercise their right to vote on corporate decisions. This is the most distinct difference…

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