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/biz/ - Business & Finance

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>> No.613623 [View]
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613623

Can someone explain to me how exactly stocks work, I'm a little confused regarding some of the specifics.

I know if a business wishes to raise equity finance they issue shares but from there what happens exactly? Do they say sell 49% of their company (Retaining majority so they can be in control of the business activities) and then sell say each 1% of .01% for a specific pre-determined price? Does a business have to meet any certain criteria before selling their shares?

By owning shares what does that entitle you to, a specific fraction of the business's profits or control of the business? What happens if a person ever holds more than 51% of shares in a company?

What dictates share prices rising and declining? Can anyone invest in shares? I've heard there are limits put on the stock market like how much shares you can sell in a single day to stop it from crashing etc.

I have a ton of questions, would appreciate it if someone could answer them all, thanks.

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