Custom Search

Saturday, August 2, 2008


From The Hoss's Mouth

Equities or stocks as they are more commonly known are shares in a business and are today's topic in Hoss Cents Free Financial Money Magazine. The purchase of an equity (stock) entitles you become a part owner in that business albeit sometimes a very, very small part. Depending on the type of equity purchased you may have a right to vote at shareholders meetings and to collect dividends. Dividends are that part of the company's profit that is shared with the stockholders. Not all profits are divided amongst the owners. There is any number of ways a company will use some of the profits for improving the business. Not unlike a consortium that owns a race horse, if they show a profit they may choose to buy another horse or horses or they may purchase a new barn to house their growing stable.

Stock exchanges are the place was stocks (equities) are normally bought and sold. They can be purchased through over the counter markets or alternative trading systems. You can also purchase them over the internet but you have to have an account with a brokerage company.


Investing in equities can produce a large return but it can also cost you a lot of money and in some cases you can lose most or all of what you have invested. You incur high risk for the possibility of a high rate of return.

You make money when a stock (equity) increases in value or if and when dividends are paid. When you sell a stock for more than what you paid for it you have a capital gain. If you sell for less, you have a capital loss. In each case you must report this on your tax return.

There is no guarantee that you will ever make money. Stock values often fluctuate and sometimes by huge amounts (can you spell Enron). Many factors determine what a stock is worth. The overall performance of the company, its size, economic conditions, competition and financial stability are but a few of these factors. If you are one of those people whose risk tolerance assessment shows you do not take kindly to these types of fluctuations in value The Hoss suggests you stay with Fixed Income Investments.

It's time for The Hoss to enjoy the company of Mrs. Hoss, so till next time,

Stay on track,

The Hoss

Next Hoss Cents Money Magazine Post: Shares, What are They

Previous Post: Fixed Income Securities


Post a Comment

Stock Ticker


The Hoss is not a financial adviser. This blog is a reflection of his personal opinion, experience and financial choices. For financial assistance, please consult a licensed financial services professional.

The contents of are provided for informational and entertainment purposes only, and should not be construed as advice. This material is not intended to provide, and should not be construed as providing individual financial, investment, tax, legal or accounting advice.

While the information shared on this website is believed to be accurate and reliable, the owners/operators of this website specifically disclaim all warranties, express, implied or statutory, regarding the accuracy, timeliness, and/or completeness of the information contained herein. Individuals leaving comments on this site are solely responsible and liable for the contents of their comments. Because this website is intended to provide general information only, you should discuss your specific needs with a qualified licensed financial services professional.

Links to other websites are for convenience only, and are independent from No liability is assumed for any inaccuracies in the information or for the content of any linked websites. No endorsement or approval of any other products, services or information is expressed or implied by any information, material or content referred to or included on, or linked from or to this website. No liability is assumed for incompatibility, non-suitability, viruses or other destructive/disruptive components on or from such websites.