Daily Archives: February 27, 2016

The Anatomy of a Stock

Published by:

If you’ve ever wanted to invest, you’ve probably heard of stocks or shares. In the simplest terms, a stock is a part of your ownership in a company. It is a claim to the underlying property of that business, namely its assets and earnings. Let’s say a company has issued 100 shares of its company. When you buy one share of that company, then you own 1/100th of that company. If the company owned only one dollar, you would own one penny of that dollar. In real world terms, what your stock or share means is you are owner of 1/100th of its debts, its assets, and its earnings. Before the internet age, this ownership was usually represented by a stock certificate. Nowadays you will hardly every see that. Instead you will see the stock appear in your brokerage account electronically. Once you own a share or stock, you are now a shareholder. Continue reading

Want the latest and greatest updates from Muslim Money Guide?

Subscribe to our mailing list below. You'll get:

  • Latest Articles

  • Video and Podcasts

  • Whitepapers and Research

Your Email Address: