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Questions tagged [shares]

Units for measuring corporate ownership.

96
votes
7answers
19k 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 ...
35
votes
7answers
10k 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 ...
2
votes
2answers
151 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 ...
48
votes
4answers
88k 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 ...
21
votes
4answers
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 ...
18
votes
2answers
7k views

Ram Solutions Group, genuine or scammer?

I have received an email from RAM SOLUTIONS GROUP offering to buy my shares at a higher price than I paid. How do I check this company is genuine?
15
votes
1answer
1k 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 ...
9
votes
5answers
950 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?
4
votes
1answer
188 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 ...
13
votes
7answers
2k views

How can so many ETFs tracking the same index coexist?

I understand that different ETFs may cost different amounts of money per share, as you are buying a proportional amount of each company on the index, but why can two ETFs that cost roughly the same ...
12
votes
6answers
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 ...
4
votes
1answer
112 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 ...
6
votes
1answer
250 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 ...
2
votes
1answer
81 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),...