What Stock Is (Quite Important For You To Know!!!)


what is stock
what is stock

What Are Stocks – Shares are evidence of an ownership of the value of a company. The word stock itself has been taken from Arabic. Shares have been taken from the term musahamah which comes from the word share itself, the form of the plural ashum or suhmah which means part, the part itself is ownership. This means that the shareholders are the owners of the company.

What is Stock???

The share itself can be interpreted as a sign of a person’s or party’s capital participation (business entity) in a company or Limited Liability Company itself. By including these capitals, the party has a claim on the income from the company, the company’s assets, and is entitled to attend the General Meeting of Shareholders (GMS). In the secondary market (exchange) or in daily stock trading activities, share prices themselves have fluctuated either in the form of increases or decreases. The formation of stock prices occurs because of the demand and supply of these shares.

Stock Gain ???

profit from stock
profit from stock
  1. Get DividendDividends are part of the company’s profits which are distributed to the shareholders themselves or can be referred to as profits.
  2. Capital GainCapital Gain is a form of profit when investors sell their shares at a higher price than the price they bought them for. Shares are liquid assets, so they are easy to trade via the Exchange.

Stock Losses!!!

loss of stock
loss of stock
  1. Not Getting DividendGenerally, the company itself pays dividends when a company shows a fairly good performance. However, when the company has experienced a decline in performance or is detrimental, the company cannot distribute the dividend.
  2. Capital LossUnderstanding of Capital Loss this is the opposite Capital Gain. This will happen if we sell the shares that we have lower than the price we have bought.

That’s about stocks that I can share information for those of you who want to learn about it, if you have questions about it, you can put them in the comments column, okay…, see you next time everyone.