Get Rich quick, How to get rich using Stocks

Stock is part of the three general financial assets alongside money and debts. Money is issued by the federal government as paper currency and coins and by some financial institutions as demand deposits or even accounts.

Debt is issued by practically every one including governments and with calculated moves, issuing debts can easily increase someone’s assets and wealth. On the other hand, stock is issued only by business firms, the issuer of stock sells ownership of the cooperation and it’s a better chance for any one to be part owner of a large company.

A stock holder
A stock holder is who owns or buys shares or stock from a firm, a stock holder is supposed to get profits once the claims of debt holders are satisfied. The exact amount of money to be paid is not spelt out in advance as it is in case of debt. Thus the shareholder of a firm receives income from the firm only after its creditors are paid what is owed them. Therefore, if you buy shares, you will always be assured of some money when ever the company makes profits.

Types of stocks
There are majorly two types of stock, first the common stock and then the preferred stock. Common stock is the security that represents the ownership of the corporation. The owners of the common stock of a firm are the owners of that firm. The more shares a person has, the greater the extent of ownership. For example, owning 100 shares out of the 1000 shares in common stock makes you the owner of 10% of the firm.

Preferred stock is not so much significant like common stock in terms of amount outstanding and as a method of financing. If you own preferred stock, you will be paid dividends before any dividends can be paid to owners of common stock.

Stock market
Stock markets are also known by many as stock exchanges, the organized stock exchanges are in themselves a way to bring buyers and sellers of stock together where as stock brokers are financial institutions that buy and sell securities at the orders of there customers.

How you will get rich from stock
Acquiring stock in a right firm can change your fortune within a short time, below are some of the reasons which can lead to that to your increase in financial freedom.

Stock acts as saving and as savings grow, your wealth increase
When the quality of stock grow, your income also grows in the same direction
You can always re sale all or part of your shares incase there value increase, for example if you own about 10 shares at 100 and the value of each share grows to 500, you will be able to re sale your shares at 5000 yet you bought then at 1000.
You can use your shares as security in many major banks as security for a much needed loan.

Conclusion
Buying shares will help you to be a part owner of even large companies and in case the share value increase, your wealth will also increase. However, you should always take care not to buy shares from a bad performing firm as that may result into a misuse of your money except when all signs of effective speculation show that that particular firm may experience an upward trend in growth. Always get advice from an experiences broker before you buy share.