What exactly is a stock?

Many people want to play with stocks and invest, but eventually die in the market and do n’t know what stocks are and why they are so attractive.
What exactly is a stock?
Source of stock
The stock originated in the Netherlands. There are many pirates in the Dutch waters. Once a merchant ship is robbed, it will be lost. What should we do? Can’t afford the escort of the army, and the pirates can’t be destroyed, which is a headache. Some people think of a way to involve the local residents. The people invest money. Merchant ships can hire escorts. The profits obtained after the transaction can be distributed according to the number of vouchers purchased by the locals. The benefits. In this way, joint-stock companies gradually appeared, and their development gradually became more and more sound.

What is stock
A stock is a kind of marketable securities. It is a share certificate issued by a joint stock company to an investor when it raises funds. It represents the ownership of the company by the holder, that is, the shareholder. This ownership is a multi-faceted right. You can participate in shareholder meetings, enjoy company dividends, and of course you take risks.

The rights and interests represented by each stock are equal. At present, the minimum unit of the market is 1 share, and the minimum transaction volume is 1 lot. 1 lot = 100 shares. The number of shares you have represents the size of your rights.

Characteristics of stocks
In simple terms, a stock is a proof of capital contribution. It is fictitious. You can recover your assets through transfer. To put it plainly, it is to sell the right to cash. But you can’t ask the joint stock company to return your investment. The investor and the company are not in the relationship of creditor’s rights and debts. If you hold stocks, you are the owner of the company! It has the characteristics of taking risks and sharing benefits.

There are all types of stocks?
Stocks can be simply divided into common stocks, preferred stocks, junk stocks, outstanding stocks, and blue chip stocks.

Ordinary stock rights: the company’s right to participate in decision-making, profit distribution rights, pre-emptive rights (pre-emptive rights when additional shares are issued), and residual asset allocation rights, but are ranked after preference shares during allocation.

Preferred shares: When distributing profits, advance the common shares in advance. When the company is liquidated, it will distribute the remaining assets first, which means that the company is yellow. You first take the remaining assets or something.

Trash Stocks: Listed company stocks with poor performance and bad performance

Outstanding stocks: Listed companies with core competitiveness, good performance and more money.

Blue chips: stocks with status, banks, insurance, securities firms, oil, etc. can influence the market

Can stocks be classified by holder?
According to the holder, it can be divided into state shares, legal person shares, employee shares, and social public shares. This will not be explained in detail. State shares are state-owned shares, warrants, etc., and employee shares are the shares of the company to employees.

What does ABHR stand for?
A: Shanghai and Shenzhen A shares, ordinary shares for domestic investors to buy

B: Stocks that are denominated in RMB but need to be purchased in a foreign currency

H: Registered in the Mainland and listed in Hong Kong

R: Can be purchased through financing

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