High Return Investments

Share

Share or stock most commonly refers to a share of ownership in a company.
The owners and financial backers of a company may decide to sell the company
in order to raise money. However, this usually leads to the loss of control
over the company.

Alternatively, by selling shares, they can sell the company, or part of it,
to many part-owners. The purchase of one share entitles the owner of that
share to literally a share in the ownership of the company, including the
right to a fraction of the assets of the company, a fraction of the
decision-making power, and potentially a fraction of the profits, which the
company may issue as dividends. However, the original owners of the company
often still have control of the company, and can use the money paid for the
shares to grow the company.

In the common case, where there are thousands of shareholders, it is
impractical to have all of them making the daily decisions required in the
running of a company. Thus, the shareholders will use their shares as votes
in the election of members of the board of directors of the company. Each
share constitutes one vote (except in a co-operative society where every
member gets one vote regardless of the number of shares they hold). Thus, if
one shareholder owns more than half the shares, they can out-vote everyone
else, and thus have control of the company.

Shares are usually traded on a stock exchange, where people and
organisations may buy and sell shares in a wide range of companies. A given
company will usually only trade its shares in one market, and it is said to
be quoted on that stock exchange.

A stock option is the right to buy stock in the future at a fixed price.
Stock options are often part of the package of executive compensation
offered to key executives. Some companies extend stock options to all (or
nearly all) of their employees. This was especially true during the dot-com
boom of the mid- to late- 1990s, in which the major compensation of many
employees was in the increase in value of the stock options they held,
rather than their wages or salary. This is still the major method of
compensation for CEO's.

The theory behind granting stock options to executives and employees of a
corporation is that, since their financial fortunes are tied to the stock
price of the company, they will be motivated to increase the value of the
stock over time.

The first company that issued shares is considered to be the Dutch East
India Company, in 1602.

Investment FreshNews:

Watchdog group: Rep. Buchanan violated campaign finance law (Miami Herald)
Tue, 19 Aug 2008 19:58:26 GMT
A watchdog group said it has filed a complaint with the Federal Election Commission alleging Congressman Vern Buchanan and two associates violated campaign finance law. The group says employees at Buchanan's car dealerships were pressured to donate to his political campaign in 2005 and reimbursed for their contributions.

Finance committee member shares about House Bill 920 (The Hamilton Journal News)
Tue, 19 Aug 2008 21:56:01 GMT
Editor's note: This is the first of a series of columns by local experts explaining school finance.

Campaign Finance Bill Seen Gaining in Senate (Washington Post)
Tue, 19 Aug 2008 07:28:43 GMT
With a conversation here and an amendment there, Senate Democrats have narrowed the gap separating them from five Republicans whose votes are needed to pass President Clinton's embattled bill to overhaul Congress's loophole-ridden campaign finance laws.

RBI must step up inflation fight: finance ministry (Express India)
Tue, 19 Aug 2008 21:58:27 GMT
India's central bank should raise interest rates to tame 16-year-high inflation, the finance ministry said, after the government handed out a 21% salary increase to civil servants ahead of elections.

New Finance PIO Named (The Kentucky Post)
Tue, 19 Aug 2008 19:42:57 GMT
FRANKFORT, Ky. – Finance Secretary Jonathan Miller has named Valeria Cummings as the new Public Information Officer for the Finance and Administration Cabinet.

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