All about stocks
A stock is a certificate of company ownership. If you buy 100 shares of a company that issued 100 million shares, you own one-millionth of that firm. You become part owner of that business, and if other people want to own it, they will have to bid for your shares, lifting their value.
When people like the prospects of a business, they bid for its shares, pushing up prices. If they don't like the outlook, they sell their stock, depressing prices.Public companies try to push up share prices because it makes it easier for them to float more equity or sell debt. Those bonuses of top executives are often tied to stock prices.
Option strategies
When people like the prospects of a business, they bid for its shares, pushing up prices. If they don't like the outlook, they sell their stock, depressing prices.Public companies try to push up share prices because it makes it easier for them to float more equity or sell debt. Those bonuses of top executives are often tied to stock prices.
Option strategies
