Subscribe to this topicForums > General Investment Discussion > Topic: General questions about owning stock
| Sep 18th 2007, 16:29 Isegrim Nikolaidis |
General questions about owning stock | |
| 1: If I buy shares from a company do they become my private property ? 2: Does owning a percentage of shares mean that I own a equal percentage of that company ? 3: Would the profits on this percentage not also belong to me ? 4: If so, how is it possible that someone else can decide where it must be spended it on ? two examples to clarify: 1: If you buy a car, would you allow the person who sold it to you to dictate when and where you could drive it ? 2: It would be like Inverstor Allen dictating Arbitage Wise where and when to spend CapEx profits after he sold Avix to him. Sounds redicilous, or does it not ? So why is it different with the shares that I own ? How come that there is no choice for me to decide if I want it payed out or reinvested in the company ? |
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| Sep 18th 2007, 17:40 Dezmond Martinek |
Re: General questions about owning stock | |
| When you buy stock your buying part of the car. You are in this Limo (or in some cases a YUGO) with a whole bunch of other people. The driver is the CEO. If you want a new driver for whatever reason, like you think his driving sucks or he likes to tailgate large construction vehicles or whatever then you and all the shareholders get to vote. Since the driver in this case has a controlling stake of 51 percent or more, he or she is the majority and its up to him or her to listen or not. Usually there is information about how this guy drives available before you decide to get in the car. Once you get in you can get out any time you want. Sure a lot of times there is a big ass puddle right next to the door but this is the risk you take and sometimes a pair or wet shoes is way better than a head on collision. For some reason corperations seldom install airbags. This was fun... I hope that helps. | ||
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