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Sunday, August 21, 2011

What Are Stocks (Part 2)?

Debt vs. Equity 

Why does a company issue stock? Why would the founders share the profits with thousands of people when they could keep profits to themselves? The reason is that at some point every company needs to raise money. To do this, companies can either borrow it from somebody or raise it by selling part of the company, which is known as issuing stock. A company can borrow by taking a loan from a bank or by issuing bonds. Both methods fit under the umbrella of debt financing.

Wednesday, August 17, 2011

What Are Stocks? (Part 1)

The Definition of a Stock 

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

Being an Owner 

Friday, August 12, 2011

Is Recent Crisis Differs From 2008?

I'm so sorry. I supposed to write something on Monday or Tuesday evening. But I was rushing for a tender and I did not sleep for 2 days. I have totally no chance to update this blog for the past 10 days. That's make me think of my financial freedom plan.

So have you find out what is wrong with the market for the past 5 to 6 trading days? I found the article below written by Francesco Guerrera from the Internet and would like to share with you.

There are three fundamental differences between the financial crisis of three years ago and today's events.

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