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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 ...
50
votes
4answers
89k 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 ...
37
votes
1answer
7k 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 ...
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 ...
24
votes
3answers
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 ...
22
votes
9answers
31k 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 ...
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 ...
21
votes
9answers
6k 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....
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
9answers
9k 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 ...
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 ...
14
votes
3answers
9k 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 ...
14
votes
4answers
4k 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 ...
14
votes
2answers
31k 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 ...
14
votes
1answer
21k 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 ...
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 ...
11
votes
1answer
2k 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 ...
11
votes
1answer
1k 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 ...
9
votes
5answers
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 ...
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?
8
votes
6answers
31k 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 ~...
8
votes
2answers
3k 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 ...
8
votes
1answer
302 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 * ...
7
votes
4answers
2k 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 ...
7
votes
2answers
1k 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 ...
6
votes
4answers
468 views

Buying shares in employer's company during IPO

So the company that I work for has just put out an IPO to float on the share market. They have offered employee's the opportunity to purchase reserved shares before the offer goes public, up to $10 ...
6
votes
2answers
220 views

How can someone own only a part of a share of stock? Are the rights any different with a fractional share?

A friend told me, he is able to buy parts of a share. So he does not buy one or two shared but one and 1/5 of a share (1.20). Is this a benefit from the digital age? Because in the past, when shares ...
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 ...
5
votes
2answers
2k views

Does money made by a company on selling its shares show up in Balance sheet

When we purchase shares of a company for a certain sum of money (e.g: 1000 dollars), is this money immediately available to the company as a cash flow? In the balance sheet, will this money show up ...
5
votes
2answers
2k views

How to invest in drones?

I expect the drones will be in the nearby future something very usual to our daily environment. Therefore I am wondering what is the best way to be invested into drones? Are there any trusts/funds to ...
5
votes
1answer
200 views

What actions 'encumber' shares?

Reading through a shareholder agreement, I encountered the following section: Encumbering shares Subject to a special resolution of the shareholders to the contrary, no shareholder shall ...
5
votes
2answers
750 views

Is it best to exercise options shares when they vest, or wait

For my situation, is it better for me to exercise all my option shares whenever they vest (are exercisable), or is there any advantage to waiting? What are the pros and cons? What is the tax aspect, ...
5
votes
3answers
304 views

Is the return on investment better with high or low dividends?

Consider two companies, A and B. Company A offers little in dividends, and reinvests most its profit. Company B offers generous dividends, but reinvests little of its profit. How would I calculate ...
5
votes
3answers
1k views

Can one use Google Finance to backtest (i.e. simulate trades in the past)?

Is it possible to simulate what would have happened if I started investing 10 years ago using Google Finance? For example, If I started investing in company XYZ where I could have invested £100 a ...
5
votes
1answer
62 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 ...
5
votes
2answers
899 views

Advantages of Shareholder over Director in new Company

I am forming a small company with a few others (in Australia). I can elect to be a director if I wish, or merely a shareholder. In either case, the shares will be evenly distributed between us. I ...
5
votes
1answer
940 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 ...
5
votes
1answer
262 views

Recover long lost shares held by brokerage that got acquired

I am a UK citizen and had a brokerage account with suretrade.com in 2001, with a number of positions in NASDAQ traded companies which today would be worth a few thousand USD for the companies still ...
5
votes
2answers
399 views

How much hassle is it inheriting shares?

A UK-resident relative has died and left their estate to be divided between a few people. The executors are still drawing up a list of assets to file for probate, and they include some stock. I've ...
5
votes
1answer
414 views

How does a small worker co-op track/manage stocks/shares [closed]

I'm considering converting my small business into a worker co-op where all employees are also owners of the company, and I'm wondering how each worker's share (e.g. in the case of preferred stock) and ...
4
votes
4answers
521 views

Am I scammed by this company?

I'd like to ask for a bit of help. In a bad moment I put a good amount of money into a supposedly broker firm. Now we are in a situation where it happens my shares are preferred shares and they can't ...
4
votes
5answers
25k views

Is there a government-mandated resource that lists the shareholders of a public company?

Is there a government-mandated resource that lists the shareholders of a public company, preferably if it included the quantity of shares each shareholder owns? Would that take the form of something ...
4
votes
4answers
667 views

Does a stock's price represent current liquidation of all shares?

For instance, if a stock is trading at 40 dollars per share, and there are one billion shares being traded, there will be a market capitalization of 40 billion dollars. Let's say the markets are ...
4
votes
4answers
6k 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 ...
4
votes
2answers
1k views

What's the difference between stocks and shares?

I'm doing some research into investing in shares (or stocks, not sure which) and I keep getting confused between shares and stocks. Are they the same thing? Even on this site the two tags exist and ...
4
votes
1answer
299 views

What's the difference between shares outstanding and regular shares?

Reading the Investopedia definition of outstanding shares, it seems like it includes all cases for a share. So how is it different than a regular share? In other words, why not just call it a share?
4
votes
2answers
227 views

Why a company would prefer selling shares rather than borrowing money?

I hope this question doesn't sound stupid as I don't have much economic knowledge. If I understand it right, the point of selling shares is that a company can finance itself. But usually small ...
4
votes
2answers
241 views

What does “cashes in many of his Enron share options” mean?

I'm studying for an organisational subject and I was reading the following paragraph: August 2001 Jeffrey Skilling resigns after just six months; Ken Lay returns to day-to-day management of ...
4
votes
1answer
3k views

Am I able to conduct a private sale of public shares at a price that I determine?

I was wondering if it were at all possible to sell my own shares to someone specific at a price I determine? Let's say I have $1,000 worth of an arbitrary publicly traded company and I wanted to sell ...