| Company Name | : Research Bull |
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Stocks are units of ownership in a company. People may buy stocks in many different types of companies. It is called investing. Their hope is that sometime in the future the company may make more money. The stocks would then be worth more money. The stock owner can then sell his stocks at a higher price than he purchased them for.
Companies sell stocks or units of their companies for different reasons. They might want to expand their company and need money to hire more employees. They might need to build a new plant or other building. They might want money to use for research and development of new products or update the old ones. Without investors, those companies probably couldn't grow.
A person who purchases stocks is called a shareholder. He owns a share of the company. If the value of the company's stocks goes up, a person makes a profit. If the value goes down, the shareholder may own stocks worth less than the amount he originally paid. He will have lost money if he decides to sell at that time. Sometimes a person holds onto stocks which have gone down in value to see if the value goes up.
The stock market is like a store for stocks. People can buy and sell shares in a company. They do research and find out how much stocks in a certain company sell for. Also, they try to find out if the company has been continually making money over the last number of years. The purchaser decides how much money he wants to invest and in what company he wants to be a shareholder. The headquarters of the Stock Market in the United States is in New York City. It is often called 'Wall Street' because that is the name of the main street in the financial district of that city.
People who are wise do not invest all their money buying shares in just one company. If an investor has shares in many different companies, he will be able to keep going even if some companies lose money for a short time. He might make a profit on the other companies.
