If you have too much money and you don?t know how to spend it, or if you are a businessman that have keen future vision, you can invest your money on something that can add more to your wealth. You can make your money works for you and you only need to sit back relax in your house. You can try to invest your money on common stock. Common stock is also called shares, equity, or securities.
Theoretically, if you have common stock in a company, you have small parts of ownership of the company. You ownership portion depends on the amount of the common stock you have. If you could invest your money to buy 51% common stock of the company, then you can become the director of the company. The profits that you get from the company also depend on the amount of stock you buy.
However, common stock brings pretty big risk. If the company is bankrupt, the common stock holder will be the last one to be paid. Therefore, if you want to invest in common stock, choose strong companies that will not go bankrupt in the next 30 years. If you get such company, don?t be hesitate to put more capital to buy more stocks.
Posted in Investment
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Source: http://greensblog.org/investing-common-stock.html
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