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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
  • 1,347
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
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
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
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
47 votes
9 answers
18k views

Am I a billionaire if a friend gives me $1000 for 0.0001% of my "company"?

If my friend gives me a thousand dollars for 0.0001% of my "company", am I technically a Billionaire now?
Aditya_math's user avatar
40 votes
2 answers
5k views

How close is the fate of Berkshire Hathaway tied to Warren Buffett?

We all are humans. Humans are mortal, and so is Warren Buffett. Given that he is an elderly man close to 90, it is quite likely that he will pass away in the next few years. Sad events like these ...
glglgl's user avatar
  • 5,415
39 votes
5 answers
14k views

Does cashing a 3% share harm the company itself?

So I have a 3% share of a tech company and saw my $20,000 become $1.8 million. I'm not planning on cashing it now, but maybe in the future. I was wondering if selling it would harm the company that it ...
Andrew Youn's user avatar
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
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
37 votes
1 answer
9k views

"Marked down as someone wanting to sell shares." What does that mean?

A few years ago I and a few friends created a company based on the web. During the raising funds period, we got a plan for $500,000 for 20% and we got investors. The last news about investors that I ...
Uncoke's user avatar
  • 489
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
23 votes
5 answers
10k views

How can a stock trade for a fraction of a cent?

I was looking at Helios and Matheson Analytics Inc OTCMKTS: HMNY (parent of MoviePass) and noticed they are trading for 0.0032 USD. I understand how this can happen as the market cap falls below 1/...
Nico's user avatar
  • 457
22 votes
9 answers
38k views

If one owns 75% of company shares, does that mean that he would have to take upon himself 75% of the company's expenses?

There are two founders in a new company that does not have any profit yet and is financed out of their own pockets. One founder owns of 75% shares, and the other one - 25%. There is a need to spend a ...
Vlad's user avatar
  • 329
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
22 votes
9 answers
17k views

Why do shareholders participate in shorting stocks?

When an investor wants to short a stock, they need to borrow shares from someone else. Why would a shareholder lend the investor the shares? When the investor gives them back, the stock would be down....
user116447's user avatar
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
21 votes
5 answers
8k views

When a journalist writes "shareholders wiped out" what does this actually mean?

I was reading a newspaper article in the FT where a journalist wrote "shareholders wiped out in restructuring deal". As a novice I'm struggling to conceptualize what "wiped out" ...
troy beckett'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
18 votes
2 answers
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?
Charles's user avatar
  • 183
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
17 votes
2 answers
37k views

How do public-company buyouts work?

I'm looking at the impending buyout of Dell and wondering how it works in practice. My understanding is that most public companies' shares are owned by individuals, or groups of individuals through a ...
Dai's user avatar
  • 1,837
16 votes
7 answers
3k 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 ...
DividedByZero's user avatar
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
14 votes
3 answers
10k views

Greedy shareholder that does not want to dilute his portion [closed]

What needs to be done or could be done if a company wants to raise capital and one of the shareholders doesn't want to dilute his shares and brands all the others as "too greedy". The shareholders ...
M.J.P's user avatar
  • 197
14 votes
2 answers
3k views

What does "Settling" mean in investing jargon?

When reading upon the definition of Chinese B-shares, I have a question about the following piece of text: The term B-shares refers to equity share investments in companies based in China. These ...
Psychotechnopath's user avatar
14 votes
4 answers
5k views

How is there a market for shares that get destroyed on sale?

After the spin-off of Hamilton Beach Brands from NACCO Industries I now own an equal number of A and B shares of Hamilton. Now here's the thing; the B shares have an interesting provision wherein they ...
Koen vd H's user avatar
  • 731
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
13 votes
6 answers
3k views

Why can I not buy fractional stock, but see fractional amounts vested?

I can't buy fractional shares, only integers. But I get some shares from my company as compensation and those are fractional all the time (like 1.7 shares). Also, when dividends are automatically ...
Rohit Pandey's user avatar
13 votes
7 answers
210k views

Any difference between buying a few shares of expensive stock or a bunch of cheap stock

I don't have a ton to invest. I have $1,000 to put into a stock and I'm eying 3 of them. One is currently trading at ~$100/share, another at ~$260/share and another at ~$25/share. So I could get ~...
rmp5s's user avatar
  • 131
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
11 votes
1 answer
3k views

Forgot to encash dividend Cheque!

My Mother holds shares in a public limited company [India], which announced it's interim dividend last year. Accordingly, they sent a cheque to her for her share of dividend, but she forgot to encash ...
A.K. Pandey's user avatar
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
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
  • 203
9 votes
5 answers
5k views

Borrowing money to buy shares for cashflow?

I currently have lots of equity in my house in Sydney. I am holding 2 investment properties that are negative and really draining my cash flow as we have young kids and wife only works part time. I ...
MJ.Gram's user avatar
  • 99
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
  • 16k
8 votes
3 answers
3k views

Does an individual share of a stock have some kind of unique identifier?

A security has an ID like a CUSIP or an ISIN. Does an individual share of a stock have some kind of unique identifier? The sort of thing that once would've been printed on a stock certificate, back ...
Toph's user avatar
  • 191
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
8 votes
2 answers
5k views

Can two people jointly purchase a single share?

I am looking to buy shares in a private, non-listed company whose shares are quite costly. (We're in the UK.) To keep things simple, let's say I'm looking to buy 1 share at a cost of £50,000. (These ...
Andi Mohr's user avatar
  • 235
8 votes
1 answer
358 views

What is the correct term to describe (shares owned * share value)?

A really simple question. What is the correct term to describe (shares owned * share value) ? I do not mean market capitalization, I mean if I as an individual person multiply shares owned * ...
Dave's user avatar
  • 183
7 votes
7 answers
6k views

Can a company with a very large valuation still be held privately?

We see many companies with extremely high valuations like Microsoft, Google, Amazon etc. All these companies are held publicly. (Although the founder might be holding a large portion of the shares; I ...
Aastik's user avatar
  • 727
7 votes
2 answers
3k views

Why doesn't share movement match difference between open and close?

Can someone explain why in the screenshot the opening price is $245 and the closing price is $251 (a difference of $6+) but the green text shows the movement as only +$1.38?
Steve's user avatar
  • 185
7 votes
2 answers
2k views

Mismatch between market cap and shares outstanding*price

Why is there a big mismatch between reported market cap and the value obtained by shares_outstanding*price? https://finance.yahoo.com/quote/BCH/key-statistics?p=BCH reported market cap = 16.58 B ...
kyc12's user avatar
  • 195
7 votes
1 answer
701 views

SEC filings: Apple number of shares

I'm experiencing some trouble in understanding the evolution of the Apple number of shares. In particular, I am looking at its 10-Qs of 27 June 2020 and 26 December 2020. Here, I read that there were ...
John Giorgio's user avatar
7 votes
2 answers
447 views

What are the most common partner equity distribution for startups?

Background I'm doing some due diligence regarding a US registered (Delaware C-corp) tech startup in Europe, where the founders are located and living in the EU. Although the business idea is very ...
not2qubit's user avatar
  • 231
7 votes
1 answer
2k views

Is a public company allowed to issue new shares below market price without consulting shareholders?

A small public company I own shares in recently advised the market it has completed a share issue to raise money. The new shares were priced significantly below the current market price and there was ...
Flash's user avatar
  • 173
7 votes
4 answers
278 views

Investment Accounts For People That Regularly Change Country

I would like to invest ~$20,000 a year, ideally mainly in funds. I am a British Citizen however I regularly move country, roughly once every 2 years. I have been in the UK for the past 2 years and ...
DontWantPeopleToKnowMyFinances's user avatar
6 votes
2 answers
3k views

How does stock split work in practice with short sellers?

Using Tesla as an example who announced a coming 5-1 stock split yesterday According to the press release, people that own Tesla stocks on or before Aug 21st will receive an additional 4 shares as ...
Bøbby Leung's user avatar

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