This comes from folks who've given the company so as to hopefully see their money expand. So that the term stock exchange appertains to a business of selling and purchasing stock. Wall Street has changed into a term folk use to explain the North American market. Corporations issue stock as they require cash to grow and develop. By issuing stock a company doesn't need to raise any liabilities. Owning stock in a company means owning part of that company. Public Choice. A share represents part of that company. If a company has issued one hundred shares of stock, and you purchased only 1, you own one percent of that company. Folks who are the owners of stock are called investors.
Votes can be taken on who will be elected onto the Board and if firms should be acquired. You'll also receive reports every year showing the company performance.
