Understanding the Stock Market Beginners are starting to understand some of the stock market fundamentals. Stock Market Beginners – A Guide to Your Stock Market Fundamentals

Purchasing a stock means that you own a part of the company. The stock is the smallest possible share. Stocks are raised by the company to sell part of their company. The person who holds the stock also has the right to express his views on the company's operations and profit-sharing (if any). Even if the shareholders have some rights, if the company is facing litigation or breach of contract, they will not face the responsibility. The worst that investors may encounter is that their stocks are worthless and they will lose their investment.

When a company sells shares, they want to raise money. They may need additional cash or need to purchase new property. There are restrictions on the number of shares to be issued. When they are issued, the stock is assigned a face value. However, as the company's success and its projected value grows, the market will soon adjust its face value.