Real Estate Priniples

Stocks

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

A stock is represented by a stock certificate. This is a fancy piece of paper that is proof of your ownership. In today's computer age, you won't actually get to see this document because your brokerage keeps these records electronically.

Holding a company's stock means that you are one of the many owners (shareholders) of a company however, being a shareholder of a public company does not mean you have a say in the day-to-day running of the business. Instead, one vote per share to elect the board of directors at annual meetings is the extent to which you have a say in the company. For instance, being a Microsoft shareholder doesn't mean you can call up Bill Gates and tell him how you think the company should be run. In the same line of thinking, being a shareholder of Anheuser Busch doesn't mean you can walk into the factory and grab a free case of Bud Light!

Money

Most people don't spend much time wondering what money is, their major concern is how much they have, and how to get more. Usually, the question of what money IS arises only when money ceases to function properly. Everyone uses money. We all want it, work for it and think about it. If you don't know what money is, you are not like most humans. While the creation and growth of money seems somewhat intangible, money is the way we get the things we need and want.

Money is a good that acts as a medium of exchange in transactions. Classically it is said that money acts as a unit of account, a store of value.

What does it do?

It ensures the success of exchange by being the one item on offer that is ALWAYS acceptable.