![]() ![]() This part-ownership gives you voting rights and any potential dividend payments.Īs we discuss below, physically buying stocks is different from trading and speculating in stocks with products such as CFDs. ![]() For example, if you own 10 shares of stock XYZ and there are 100 shares in total, you own 10% of that company. When you own stock in a company, you own a slice of that company equal to the number of shares you own. When buying shares in a company, you are becoming a part-owner of that company and gain any rights that come with those shares, for example, voting and dividend rights. ![]() While a company can issue more shares, there is always a limited supply, which allows you to know the number of shares in circulation. Once the shares have been floated on the stock exchange, the price is open to the public and can move higher and lower depending on supply and demand. This is known as an IPO or initial public offering.Īt the start, the company will choose the price point that the shares are listed at. If a company is looking to raise capital, it can offer its shares to the public and list on a stock exchange.
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