NYSE – What it is and How it Works

A stock is simply an investment in a business. When you buy a company’s stock, basically you are buying a tiny piece of that business, known as a share. Many investors buy stocks in businesses that they believe will go up in price.

When you buy shares of a business, you become a shareholder since you indeed share in the profits of the business. The profits are then divided between the shareholders in the form of dividends. This process of dividends is what is used by the stock exchange to ensure that the shareholders are getting a portion of the profits that have been paid out to them.

However, unlike traditional stocks, shares on the stock exchange are not immediately available to all shareholders. Shares can only be sold to other shareholders through a broker or by a company in order for the stocks to be listed on the exchange. By becoming a registered investor with the NYSE, investors are able to purchase shares from other investors and are thus able to have more control over their ownership. Because of this, many private individuals have taken advantage of the ability to have a greater say in their company’s future.