Can you please explain the following terms in as simple terms as possible...?
Stock (stockholder)
Shares (shareholder)
Answer:
In order to operate, a company needs money to get started. This is "capital". It may also need money to invest later on, in order to buy equipment, property, or other things. This is also "capital".
Companies raise the capital they need by selling "shares" of stock. Each is a partial ownership of the company, and entitles the owner to a portion of the profits from the company and a right to have a say in how the company is operated.
The people who buy these shares become "shareholders", also known as stockholders.
The right of the stockholders to have a say in the management of the company is usually assigned to a group of managers who the stockholders elect on a regular basis (much like a representational democracy).
Hope this helps.
Hmmm.look it up.
Nice try, but why should we do your work for you? Part of education is learning how and where to find information, so you would gain by searching the net using these terms.
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