The stock market is vast and risky. If you want to enter the stock market, you must first know what stocks are, what they can bring to you, and the value and risk of investing in the stock market
This section talks about the sources of stock profits. There are generally two sources of stock profits. One is the dividend received by shareholders when the company distributes earnings, and the other is the price difference between stock buying and selling.
Stocks are now nearly 400 years old. The earliest stock market arose in 1602 when the Dutch and British established overseas trading companies. These companies are established by raising share capital and have obvious characteristics of joint-stock companies; they have legal person status; a board of directors is established; the general meeting of shareholders is the company's highest authority; dividends are distributed according to shares; and a limited liability system is implemented. The successful operation and rapid development of the joint-stock company made more enterprises follow suit.
The differences between stock options and restricted stock lie in four areas: symmetry of rights and obligations, symmetry of rewards and penalties, waiting period versus confinement period and exercise price versus grant price.
Warrant trading means that the holder acquires a right, not a duty, and the recipient has the right to decide whether or not to honour the contract, while the issuer has only the obligation to be executed, and therefore the investor has to pay a price to acquire this right.
