The term "stock market" refers to the place where companies sell their securities. It's also called the trading floor because traders usually meet there. When you hear people say that something is traded on a stock exchange, they are referring to a stock market.
When you invest in a company, you buy a share of ownership in it. The company itself doesn't own anything. Instead, the shareholders collectively hold the assets of the company.
The company sells this asset by offering them to investors for a price that represents the value of what has been created by the owners. In other words, the owner wants to get rid of this asset and trade it in exchange for money. This is why the process is called selling.
If you want to understand how buying or selling investments happens, you need to know what a stock certificate looks like.
To get information about stock handling fee ( 股票手續費 )
Understanding the Stock Market
A stock is a company that sells its products to the public. When you buy a stock you own part of the business, but you don't necessarily get any dividends from it. You can either sell your shares back at a later date, or you can hold onto them forever.
When companies issue new stocks, they're known as issues. This means that the number of outstanding shares of the company increases. If more people want to invest in the company, this will increase the price per share.
If the value of the company goes down, it's said to be trading below the book value. The book value is the total amount of money that a company would need to pay to acquire all of the assets. So, if the book value of a company is $10 billion, then the company has a net worth of $9.5 billion.
The difference between the two is called the shareholders' equity. Shareholders' equity is also referred to as the owners' capital.
