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Questions tagged [shares]

Units for measuring corporate ownership.

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120 votes
7 answers
35k views

Why is stock dilution legal?

What I always heard, since I was a child, was that if you own a stock share, you actually own a small share of a company. That seems to be the general consensus of what a stock share is. Well, that ...
lvella's user avatar
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10 votes
1 answer
3k views

How does ownership in fractional shares work?

I've been trying to find out some more information about fractional shares, and how they work. I understand conceptually, you own x% of a share rather than x "full" shares, but I'm curious about how ...
as646's user avatar
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38 votes
7 answers
11k views

Why is it rational to pay out a dividend?

Imagine a mature company, which has stable earnings and made a profit this year. The company is planing to pay out a part of this earnings to its shareholders. Assuming the stock price goes down ...
lukstei's user avatar
  • 541
21 votes
7 answers
11k views

Buying shares when the price goes down 2% and selling shares when it goes up 2%

Suppose I have 50,000 in a tracker. Because it's an aggregate of the share index, it can obviously go up or down but what it certainly does is fluctuate up or down. What is the problem, if any, of ...
Mike hall's user avatar
  • 243
70 votes
4 answers
142k views

How does a public company issue new shares without diluting the value held by existing shareholders?

When a public company issues new shares, the total number of shares traded in a secondary market goes up. Assuming there is no change in the fundamentals of the company and the profitability, I would ...
Mozan Sykol's user avatar
20 votes
1 answer
3k views

I received a share of Apple stock. Now what?

For my 13th birthday, I received a single share of AAPL, Apple Inc. I framed my certificate, and placed it up on my wall, but what else can I do? I am aware of the basic mechanics of buying and ...
AAM111's user avatar
  • 311
3 votes
3 answers
5k views

Is it possible to own more than 100% of outstanding shares?

Suppose there are 100,000 shares outstanding. I own 90,000 shares. I allow my shares to be lent to short sellers. Short sellers borrow 30,000 shares from me and they sell those shares on the market. I ...
Flux's user avatar
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49 votes
2 answers
6k views

What is the difference between shares, stock and stakes?

What is the difference between shares, stock and stakes? For a layman, many times it seems they are used almost interchangeably.
Rajorshi Koyal's user avatar
2 votes
2 answers
210 views

How could strike price for new shares be higher than the market price

A company has made an application for new Ordinary Shares. The new Ordinary Shares will rank pari passu with the existing Ordinary Shares. Also the company issues Ordinary Shares in respect of the ...
Vasile's user avatar
  • 131
22 votes
4 answers
7k views

Did an additional $32 billion necessarily get invested into Amazon.com stock on October 26th, 2017?

The share price went up about 6.9%, and the market cap is $466 billion. Does that mean that that much new money had to have been invested after hours? Would it otherwise be possible for the stock ...
J. Doe's user avatar
  • 459
14 votes
1 answer
33k views

Do companies only pay dividends if they are in profit?

My understanding of dividends is that the company pays each shareholder a fixed amount of money per share they own. I can see how this would work if the company is in profit, because the company can ...
Karnivaurus's user avatar
9 votes
5 answers
2k views

Why would a company like Apple be buying back its own shares?

What is the reason that a company like AAPL is buying back its own shares? Does it have too much cash and it doesn't know what to do with it? So it is returning the cash back to investors?
Victor123's user avatar
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8 votes
4 answers
21k views

Why would I vote for an increase in the number of authorized shares?

Whole Foods is requesting its shareholders to vote: To approve an amendment to the Company’s Articles of Incorporation to increase the number of authorized shares of the Company’s common stock ...
lid's user avatar
  • 312
6 votes
1 answer
8k views

what is DEMAT equivalent in USA

I am new to USA. In India to trade in market one needs a Demat account and a trading account. but In USA, when I opened an account with a reputable brokerage there was no mention of an account similar ...
Neil's user avatar
  • 1,065
1 vote
3 answers
338 views

Accumulating shares by selling PUT options

Let's say I believe there is a 50% chance TSLA goes to 300 and I'm a long term Tesla bull trying to accumulate more shares. I've filled my boots so far, but still have 20k and thinking what's a good ...
Data Courier's user avatar
0 votes
1 answer
181 views

Some basic questions

If someone bought 100% shares of a company (I know that it is not so simple to do in practice), can he decide that the company whose shares he bought will pay him salary every month? How is it in the ...
kevinbaxter's user avatar
95 votes
1 answer
19k views

Found old paper shares of Motorola Inc that has since been broken up

I found 36 physical shares of motorola inc from 1999. I know that since then the company has split up into a lot of subsidiaries/mergers. Is there any to sell this physical stock or is it worthless? ...
thelegend27's user avatar
61 votes
2 answers
15k views

Found more old paper shares from broken up companies

I recently asked a question with regards to 36 physical shares of motorola inc from 1999 I found lying around. Thanks to the great answer I received (if you're wondering they're worth around $3000), I ...
thelegend27's user avatar
37 votes
7 answers
11k views

Selling property inheritance share to sibling, 25 years later: original value? current value? something else?

My father died about 25 years ago, leaving me and my siblings a certain percentage of the lake home and property equaling 100%. At the time of death the property/home was paid for. My brother bought ...
JC Williams's user avatar
28 votes
3 answers
16k views

50k job is offering 90k worth of shares. Scam?

This was a job posting on Linkedin, in the software industry. The rules are that you can sell up to 30k per year. But the job offers 50k (GBP) and it seems that offering shares greatly in excess of ...
speciesUnknown's user avatar
24 votes
3 answers
6k views

CEO entitlement from share ownership?

If I own shares of a company, am I entitled to apply as position of CEO? Who decides? Do I have more clout within the corporation to gain positions of work in the company than a non-holder? What kind ...
SeneJerry's user avatar
  • 241
17 votes
9 answers
19k views

Should I set a stop loss for long term investments?

I know stop losses are very important for managing risks. I would like to buy shares that I plan to hold for at least 5-10 years. Should I consider putting a stop loss on these stocks? If so, how ...
Joe.E's user avatar
  • 6,080
15 votes
3 answers
16k views

Is a public company able to check out who owns its shares in very detailed format?

I often heard about "big players" manipulate the price of a stock. So if the "big player" is not an insider, can the company itself have any way to know who has positions in its stock? Is there any ...
AGamePlayer's user avatar
  • 2,527
12 votes
6 answers
3k views

What is the process of getting your first share?

Hello I'm 21 years old and I recently moved to London currently employed as an Salesforce Administrator at Heathrow Airport. Everyone here talks about owning shares investing in different types of ...
user avatar
12 votes
1 answer
3k views

Do companies sell puts when buying back shares?

Say company X has a share price of $80. They think their shares are undervalued, and their board approved a buyback of $1 billion. Can company X use the $1 billion to sell puts at $79, with the idea ...
Allure's user avatar
  • 2,730
10 votes
4 answers
3k views

Why is the price of Berkshire Hathaway B class shares proportional to the face value and not the voting rights?

So there are BRK.A and BRK.B. The face value of BRK.A is 1,500 times of that of BRK.B, and BRK.A has 10,000 times the voting rights of BRK.B. BRK.A is normally traded at about 1,500 times the price of ...
Jaeseop Ahn's user avatar
6 votes
1 answer
363 views

Tax due on foreign exchange element of share option program?

This is quite complicated and to be honest I'm not really expecting anyone to know the answer, but I thought it would be worth asking. Five years ago my (UK) employer's (French) parent company ...
Vicky's user avatar
  • 24k
6 votes
4 answers
3k views

Why is it not a requirement for companies to pay dividends?

I know next to nothing about finance and money, so I'm working towards becoming financially literate. I'm currently reading articles about stocks on Investopedia. An article states, Common shares ...
gsgx's user avatar
  • 171
6 votes
2 answers
3k views

How do share buybacks work?

When a company announces a share buyback program, who do they actually buy back the shares from? Openly traded shares on a stock exchange? Is there a fixed price that they buy back at? If I own ...
NL49's user avatar
  • 289
4 votes
1 answer
302 views

What shares are actually being sold in "ATM" format release?

I recently invested in $HMNY, a listed company and the owner of MoviePass. I invested it simply because that I love the MoviePass idea. Then, rumors says that the company wouldn't last long for the ...
AGamePlayer's user avatar
  • 2,527
4 votes
1 answer
785 views

How to start buying shares with small amount of money?

I am a new immigrant in New Zealand (NZ) who brought some money (not much though) from back home. Those money are resting in my bank and doing nothing. I want to invest some of them in stock market ...
awatan's user avatar
  • 151
3 votes
3 answers
21k views

How did I end up with a fraction of a share?

My online broker, Fidelity, says that I have 0.16 shares of MSFT. How is this possible? I always assumed that you had to own a whole number of shares.
V Maharajh's user avatar
3 votes
0 answers
78 views

Stamp duty on UK share purchases made by non-UK residents

I am a UK ex-pat living in the EU and have recently bought shares in two different UK companies using an EU-based broker. Following the transactions I was surprised to find that there was no stamp ...
Giles's user avatar
  • 31
3 votes
9 answers
645 views

Are stock options worth as much as shares?

I was undergoing salary increase negotiations (after a year) recently and it was decided a percentage of my salary was to be paid in shares. However, when the offer came, I noticed I would be getting ...
Aequitas's user avatar
  • 716
3 votes
2 answers
259 views

Is an in-kind transfer of existing shares into a Stocks and Shares ISA allowed, i.e. without selling + repurchasing?

Normally, the way to fund a Stocks and Shares ISA is to transfer money in, taking care to stay below the annual limit, and then purchase the stocks or funds from within the ISA. What happens, though, ...
Gagravarr's user avatar
  • 802
3 votes
1 answer
10k views

ADR vs Ordinary shares

Why should someone prefer an ADR if he can get the ordinary share from the same stock exchange? Yes, ADRs often have multiple ORD bundled but they also cost more (fees for the company who manages ...
Swizzler's user avatar
  • 1,283
2 votes
4 answers
296 views

A stock needs to have a combination of a buyer and a seller in order to exchange hands. Then how is the supply and demand created?

I have no background in the stock market and I have just started to learn about it. Please excuse me if this is a stupid question. What I know so far is that if I have to sell a share, there has to ...
Rishab Gupta's user avatar
2 votes
2 answers
304 views

What happens if I don't sell my shares of a company that's being bought out?

My question is specific to an Adani groups acquisition of a majority stake in the company Snowman Logistics (both are companies in India). I have shares in the Snowman Logistics company. What will ...
A j's user avatar
  • 131
2 votes
1 answer
1k views

How do US companies release their public float share counts?

Looking at AAPL, how does Yahoo Finance calculate that today's float is 4.59B shares? I was hoping to find SEC filings from AAPL confirming this, but I can only conclude that the float was 5.20B back ...
bobuhito's user avatar
  • 502
2 votes
1 answer
521 views

What happens to the shares (of company A) in a "brokerage account" when company A gets bought?

I understand what happens to the shares of a company when the company is bought. What is not clear to me is if I own those shares through my account in a brokerage firm (e.g. Vanguard, Schwab, eTrade),...
B Chen's user avatar
  • 1,029
1 vote
3 answers
202 views

Which US organization acts as the central depository for shares?

In Singapore, my shares are held by an organization known as the Central Depository (CDP). Regardless of which stock brokerage firm I am using, I can see the same shares, as all of the shares I own ...
Flux's user avatar
  • 17.1k
0 votes
2 answers
1k views

How can US stocks change so much without any new company activity?

I follow the market every day. It is rushing to recover losses over the last few weeks. However, stock prices are not mirroring the actual activity of the companies, only because liquidity in ...
Alexander Baum's user avatar
0 votes
1 answer
262 views

What is the difference between having "book entry ownership" and being the "holder of record" of shares?

I am trying to understand the difference between "book entry ownership" of shares, and being the "holder of record" of shares. Apparently, the distinction is important in answering ...
Flux's user avatar
  • 17.1k
0 votes
1 answer
596 views

Where Can The Fully Diluted Outstanding Shares Of A Company Be Found?

This is a quick question. Wikipedia mentions the distinction between basic shares outstanding and "fully diluted shares outstanding". Does anyone know where I can find the count for fully diluted ...
Andrew's user avatar
  • 301
-1 votes
1 answer
314 views

What makes an actual share valuable? [duplicate]

Excuse me if this has been asked before, but I can't find the answer I am looking for. In a stock market, securities, typically shares, are bought and sold. But what makes a share valuable. Of course,...
Nate D's user avatar
  • 179