Ferreras, Aubrey

How shares are created and sold?

K- Shares are units of ownership interest in a corporation or financial asset that provide
an equal distribution of profits , if any declared, in the form of dividends. The two main
types of shares are common shares and preferred shares. Physical paper stock
certificates have been replaced with electronic recording of stock shares, just as mutual
fund shares are recorded electronically.

W- How choices for investment, loans and shares are created, then sold to investors.

L- If someone has stock in a corporation, he or she has a share in the ownership of that
corporation. Having shares of stock in the corporation means Income for the
corporation. The purchase of these stock shares helps to finance the corporation's start-
up, operations, and expansion. Owner right to decisions. Usually, a share in a
corporation buys the owner a right to a vote at the corporation's annual meeting, to elect
board members, and have a say in the direction of the corporation. Owner's right to
receive dividends. Dividends are the reason most people buy shares of stock. The
more stock, the more spread out will be the ownership. The corporation also must
decide whether the stock will be offered for sale publicly or privately. After the decision
has been made, the Articles of Incorporation include the initial number and price of
shares to be issued. The corporation then begins the process of offering the stock for
sale, either publicly or privately. If one person owns one share of stock more than any
other person, that individual is said to have "controlling interest" in the corporation.