To whom do Boersen belong
Those who are new to the stock market first find out about the basic terms that every trader needs to know. Today: the importance of securities.
Dax, dividend and share: Anyone who wants to get started on the stock market initially only understands the station when it comes to the jargon prevailing there. Some feel overwhelmed or even intimidated by the many, complex terms - but it doesn't have to be. The editors explain step by step what this is all about.
What is a share?
A share is a Security that securitizes the share that you acquire as an investor in a company or a stock corporation. So whoever owns a stake also owns a small part of the company as a so-called shareholder.
How large this proportion is depends entirely on how many shares the company issues to the general public and how many of them are in its possession. According to the FAZ, the total number of shares in the 30 largest German stock corporations is between 90 million and 4.4 billion.
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Where does the term "share" come from?
It is believed that the word Share from 1472 in Bremen from the Middle Low German word "axie", which means something like "entitlement" or "right". This in turn should come from the Latin ("actio") and derive from the term for the "claim".
Officially, the Dutch East India Company is the first company to issue 1603 shares ("actien in de Compagnie").
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The story of the share
The United East India Company (VOC) is said to have consisted of six chambers and for the first time ever issued shares to external shareholders outside the company. After that, share trading began. So should already in 1612 the first stock exchange in Amsterdam have arisen. Initially, the stockbrokers employed by the companies determined supply and demand as well as the stock market price, which acted in the interests of the company they represented. The securities were also stored elsewhere.
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Based on the model of the VOC, the first German stock corporation 1682 with the Brandenburg-African Company, known for its overseas trade. The first German stocks, however, were only 1785 on the Berlin Stock Exchange acted. In the 19th century the stock business developed rapidly and more and more stock exchanges opened in Germany. In addition, the number of stock corporations increased massively.
The Frankfurt Stock Exchange in particular stands out here and has established itself as Germany's leading stock market from the middle of the 19th century, on which international securities are also traded.
Nowadays, however, these are no longer issued in individual documents, but the (non-securitized) shares are often kept and managed by banks in custody accounts.
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As a shareholder, do I have any influence on my share?
Even if you own part of the company as a private investor, you can no direct influence take to the shops. However, with the purchase of a share you acquire the following rights:
- Right to distribution of profits (dividends)
- Right to a share in the company's share capital
- Right to liquidation proceeds in the event of bankruptcy
In addition, shareholders are allowed to attend the annual general meeting of the respective companywhere important things are discussed and (co-) decided. However, it should be noted here that not every share is entitled to vote.
"Mr. Dax" recommends: You should buy these three stocks right now. Below that you will also find the Amazon share, the price of which just doesn't seem to stop any more.
But if you own the majority of the shares in a company (50% +1), you are automatically the one Majority shareholder and can always outvote the others in the shareholders' meeting and even decide on the structure of the company and the composition of the board of directors.
What do I get for a share?
Basically, the investor is happy when the share price rises steadily. This also shows that the company is doing well - so it can too high dividend expect. This is a Share in the company's profits. How high this is, however, is determined by the company and can vary from year to year. This will also be announced at the annual general meeting.
Who or what determines the share price?
That determines on the stock exchange Principle of supply and demand: The exchange traders match these and act accordingly. That is, they buy or sell the shares again. However, indicators are not only the number of securities, but also the maximum limit they are willing to spend on a share or how much they want for a certain amount.
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So if the offers to buy predominate, the share price also rises, but if the offers to sell, it falls as expected. As an investor, it is therefore advisable to think carefully beforehand what amount you have on hand - and how much you are willing to pay for a share.
Why should I invest my money in stocks?
Generally there are two possibilitiesto build a fortune with stocks. When the price of a stock rises, so does its value. Sells an investor then at a later (favorable) point in time, he makes a profit.
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Alternatively, you can build up a long-term share portfolio and thus collect the dividend distribution of the company (s). The best part: It is paid annually and you don't have to sell your securities to do so.
What types of stocks are there?
Depending on your investment strategy, it is therefore worthwhile to invest in one of these two types of shares:
- Growth stocks
- Value stocks
With the former, the name says a lot: Here is Expect great growth from the companies whose shares you own. When the company reports success and profits, it attracts even more investors to invest. Ergo, the share price also rises sharply. However, growth stocks are for this reason much riskier, their prices fluctuate more frequently - and the companies hardly pay or little dividends out.
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Value stocks come from companies that can always achieve high profits and are established on the stock exchange. They pay a lot high dividends in the long term out. Your market values are more stable, but no more breakthroughs are to be expected. Hence their securities too less risky and often investors invest in them in order to receive regular dividends.
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