A stock or share (also known as "equity") is a financial instrument that reflects ownership of a company or business and constitutes a proportionate claim
on its assets (what it owns) and earnings (what it earns in profits). Stock ownership means that the shareholder holds a business slice equal to the number
of shares held as a share of the total outstanding shares of the company. For example, a person or corporation that owns a company's 100,000 shares with 1
million outstanding shares would have a 10 percent stake in it. Many companies have outstanding shares in the millions or billions.
If you're scared by the idea of investing in the stock market, you're not alone. Individuals with very limited stock investment experience are either
frightened by the average investor's horror stories losing 50% of their portfolio value – for example, in the two bear markets that have already occurred in
this millennium – or are seduced by "hot tips" that promise huge rewards but rarely pay off. Therefore, it's no surprise that the investment sentiment
pendulum is said to swing between fear and greed.
Why Invest in Stocks?
The truth is that investing in the stock market carries a risk, but when done in a controlled manner, it is one of the most effective ways to build up one's
net worth, and our team at Tesco Trade has researched these disciplinary measures and analytically analyzed them.While the value of one's home usually
accounts for most of the average individual's net worth, most of the affluent and very wealthy are commonly invested in stocks for the most part.