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Understanding Stocks

This is a good piece on financial literacy - understanding a critical component of the capital market. Uchechukwu Ajuzieogu has done well on explaining stocks here.

"In other words, a shareholder is now an owner of the company issuing the stock (s). Ownership is therefore determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company’s assets and earnings (paid annually—first quarter, second quarter, etc)." U.A.

Read this to understand the basic elements of stocks, equities etc in firms.

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