WHAT IS A STOCK?
The Stock Ticker Is Not A Stock Ticker
“p.s. A share and a stock are just interchangeable term.”
What are we actually buying when we purchase a stock? Are we merely buying a stock ticker that move up and down every second?
In fact, a stock is much more than that. A stock or share, is a part-ownership of a company. That means that when you buy a stock, you are becoming a shareholder of the company behind the stock ticker. If you have invested in the stock of Telekom Malaysia or Singapore Telecommunication, you have in fact turned into a shareholder of these companies. This means that you are entitled to a percentage profits that the companies are generating.
For example, if you have bought 100,000 shares of Airasia Bhd at RM 3.00, it means you have invested (100,000 x ......