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INVESTING BASICS: INVESTING IN THE STOCK MARKET
May 15, 2008 - Want to own part of a business without having to show up at its office every
day? Or ever? Stock is the vehicle of choice for those who do.
Dating back to the Dutch mutual stock corporations of the 16th century, the modern stock
market exists as a way for entrepreneurs to finance businesses using money collected from
investors.
In return for ponying up the dough to finance the company, the investor becomes a part owner
of the company. That ownership is represented by stock -- specialized financial "securities,"
or financial instruments -- that are "secured" by a claim on the assets and profits of a company.
Click on the red link above to continue the story.
Source: The Motley Fool