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Showing posts with the label Owning a Stock Actually Means

What Owning a Stock Actually Means?

  Most people realize that owning a stock means buying a percentage of ownership in the company, but many new investors have misconceptions about the benefits and responsibilities of being a shareholder. Many of these misconceptions stem from a lack of understanding of the amount of ownership that each stock represents. For large companies, such as Apple ( AAPL ) and Exxon Mobil (XOM), one share is merely a drop in the pond. Even if you owned $1 million worth of shares, you'd still be a small potato with very little equity in the company. So what does this mean? Let's take a look at three of the biggest misconceptions about being a shareholder. KEY TAKEAWAYS Stockholders own shares of a company, but the level of ownership may not present the benefits and responsibilities sought after. Most shareholders have no direct control over a company's operations, although some have voting rights affording some authority, such as voting for the board of directors members. Being a sha...