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Showing posts with the label #shareholders

Simple Rules For Successful Investing

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Never Borrow to Invest If you are planning to start investing in the stock market, first get rid of your previous debts. Moreover, you should only invest that amount which is surplus. Diversify Your Portfolio! If your investment is diversified (five or more stocks), then the chances of a single stock hurting your entire portfolio is reduced. Invest Consistently If you want to build wealth from the market, you need to invest consistently. You also need to increase your investment amount continuously. Avoid Herd Mentality Try to avoid getting influenced by other investors. Understand and follow your strategy. Think Long-Term Most of the stocks take at least 2-3 years time frame to give good returns to their shareholders. Don't  Get Emotional Many investors have been losing money in stock market due to their inability to control emotions, particularly fear, anger and greed. 

Why companies split stock?

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Why companies split stock?  Stock split or forward stock split is a corporate action where board of directors decides to issue more shares by dividing existing outstanding shares into multiple shares defined by the predetermined ratio. Most common ratios are 2 for 1 or 3 for one where investors for every share they own get two or three shares respectively. Likewise, price will be divided accordingly. If for example you originally owned 100 shares, each worth $15 in 2 for 2 split you will receive 200 shares each worth $7.5 and in situation where 3 for 1 split is done it will be 300 shares with $5 price per share. As you can see no real value is added and market capitalization is the same just like with reverse stock split. Companies do this for various reasons. Some stock price can reach astonishing level and company's official might want to lower the price to make it more appealing to small retail investors. Some argue that there is a psychological ef...

Being a public company - what it means?

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Being a public company - what it means? In simple term public company is company whose shares are publicly traded on one or more stock exchanges or over the counter market (OTC) and that ownership is dispersed among the many investors. History of public market dates back in early modern period when Dutch helped lay foundation of modern financial system. Publicly traded companies usually have many investors while privately held companies had fewer, but company with big number of investor doesn't have to be public company. Securities and Exchange Commission (SEC) states that every company with more than 500 investors and more than $10 million in assets must register with SEC and adhere to its regulations. Most public companies where private and after that they meet requirements to become publicly traded company mainly because it brings many advantages. Public companies are able to raise capital through the sale of stock in a way shares become company's currency...

Rising Capital with Your Public Company

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Rising Capital with Your Public Company The Problem Solved by Continuous Offerings Period to the introduction of Reg A+, companies with existing stock trading are willing to sell with the old Reg A. To achieve this, the price of the price of the stock had to be relatively reasonably compared to the market price. But, the market price by small companies can be unpredictable or volatile. To enable the company changes the offering price, the company must file an amendment of its Reg A+ filing, and it takes weeks to get the approval by the SEC. During this period of waiting, changes in the market price automatically mean that pricing would be out of date. After the offering is approved by the SEC, companies have the right to offer stock at various prices over a period through the new Reg A+. At the time of sale, pricing information is filed after sale as a supplement which does not require the SEC review. Terminology First, there is a need to understand the differenc...