Бесплатный фрагмент - I’m a shareholder

The desire for financial independence and growth of their capital makes many people think about different ways of investing. One of these ways is to buy shares in companies. In this book, I will talk about my experience of becoming a shareholder, the path I followed and what motivated me to make this decision.

First step: interest in finance

My journey as a shareholder started with my interest in economics and finance at school and university. I read books about how the stock market works, how to analyze companies and their financial reports. This interest made me think about how I could grow my savings and become part of a business.

Step two: researching the information

After graduating from university, I decided to delve into the topic of investing. I took several courses about the stock market, read articles and watched educational videos. I learned about different types of stocks — common and preferred, about dividends and how important it is to analyze market trends.

Third step: opening a brokerage account

When I felt ready to be active, I opened a brokerage account. Choosing a broker was an important stage, as it was necessary to choose a reliable company with suitable trading conditions. I studied reviews, compared commissions and chose the brokerage company that seemed most suitable to me.

Step four: first investment

With the little capital I had saved, I started making my first investments. I carefully chose companies based on their financial performance, market position and growth potential. The first stocks I bought belonged to a well-known technology company whose products I used and knew well. With each purchase, I became more and more confident and knowledgeable.

Step five: gaining experience and financial results

As I continued to invest, I began to understand more about the workings of the stock market and began to observe the impact of various economic factors on stock prices. I learned how to manage risk and diversify my portfolio. It was important not only to monitor my stocks, but also to learn new strategies and approaches.

Today I am proud to call myself a shareholder. This path was not easy, it required a lot of effort, learning and analysis. Investing has opened up new horizons for me and given me the opportunity to take part in the development of successful companies. Every investor should remember that it is important not only to strive for profit, but also to study the market and one’s investments carefully. I hope that my experience and my knowledge invested in this book will be useful for other people who want to become shareholders and increase their money.

Who is a shareholder?

A shareholder is an individual or legal entity that owns shares in a joint stock company. Shares are securities that certify the shareholder’s right to a share in the company’s capital and entitle him/her to receive income in the form of dividends, as well as the right to vote at shareholders’ meetings. In this chapter, we will look at the main features of share capital, the rights and obligations of shareholders, and their role in the management of the company.

Shareholders can be either individual (natural persons) or legal entities (companies, institutions and organizations). Depending on the number and type of shares they own, shareholders may occupy different positions in the company’s management structure:

Common shares — give the right to vote at general meetings of shareholders and the right to dividends.

Preferred shares — provide fixed income (dividends), but do not give the right to vote at meetings.

Shareholders’ rights

Shareholders have an assortment of rights that can vary depending on the type of shares they own. The main rights of shareholders are:

The right to participate in the management of the company. Shareholders have the right to vote at general meetings where key issues relating to the operation of the company are decided.

The right to receive dividends. Shareholders are entitled to a portion of the profits distributed by the company.

Right to information. Shareholders can request necessary information about the company’s operations and financial condition.

The right to sell their shares. Shareholders can freely dispose of their shares by selling them to other investors.

Duties of shareholders

Shareholders also have certain responsibilities, among which are:

Liability for losses. Shareholders bear the risks associated with investments to the extent of their share in the company’s capital. They are not liable for the company’s debts with their personal property.

Participation in the meeting. Shareholders are obliged to attend meetings and vote on important matters.

The role of shareholders in the management of the company

Shareholders play a key role in the management of a joint stock company. They elect the board of directors, which in turn is responsible for the strategic management of the company. Thus, shareholders directly influence the business directions and overall policy of the company.

Shareholders are an important part of the corporate structure because they not only fund the company’s operations but also participate in the decision-making process. Understanding their rights and obligations helps to ensure more efficient management and growth of the joint stock company in the long term. In a developing market economy, shareholders become not just owners of a share in the capital, but also active participants in the formation and development of the business.

Methods of selecting promising companies for investment

Investing in stocks is perhaps one of the most exciting ways to grow your capital. Don’t you think choosing the right company can be a bit like a treasure hunt? Everyone wants to find that one “golden” stock that promises colossal profits. But how do you know exactly what to choose? In this chapter, we will share with you methods and strategies that will help you choose companies that are promising for investment.

Understanding the fundamentals of equities

Before we dive into analytical techniques and strategies, let’s understand a little bit about what a stock is. Essentially, stocks are equity securities that entitle you to a stake in a company. When you buy a stock, you become a co-owner, and your success depends on the success of the company.

The importance of analyzing companies

It is important to remember that picking stocks is not just “guessing” or relying on intuition. It requires careful analysis. One of the first and most important tasks is to understand what the company you want to invest in is all about.

Types of analysis

Fundamental analysis: here we look at the financial state of the company, its revenues, expenses and, of course, profits.

Technical analysis: this approach involves studying charts and price fluctuations of a stock to predict its future behavior.

Before you start choosing companies, it’s important to understand your investment goals.

What are your goals?

— Do you want to get rich overnight? Or are you looking for a steady income?

— Do you want to minimize your risks or are you willing to take risks for more income?

The whole world of stocks is divided into different sectors — technology, healthcare, energy, and so on. Understanding which one has the greatest potential is half the battle.

How to choose a promising industry?

— Keep up with new technologies and trends.

— Study analysts’ reports on future trends.

Now that you’ve decided on an industry, it’s time to examine the financial performance of companies in that field.

Key indicators

Revenue: reflects the company’s income. If revenue is growing steadily, this is a good sign.

Earnings per share (EPS): this shows how profitable the company is. A growing EPS is a positive signal.

P/E ratio: the ratio of a stock’s price to its earnings. A low P/E can indicate an undervalued stock.

Evaluate the management of the company

A strong management team undoubtedly impacts the success of a business.

How do you study an executive team?

— Familiarize yourself with the biographies and experience of top managers.

— Study their history: what achievements have they had before?

Stay tuned for news and events

In the world of finance, every event can have a significant impact on the markets.

How to stay informed?

— Subscribe to financial news resources.

— Use social media to follow news from companies directly.

Competitor analysis

It is important to understand how the company you want to invest in compares to its competitors.