What is an action? – forex trader
company, actions, investors, forex trader
An action is a unit of ownership in a company that can be put on sale to investors.
The total value of the company is divided into units of the same size. Each an of the units is known as action. To contextualize this, if a company is worth 200 million dollars and 100 million shares, every action has a value of $ 2, or 200 cents.
When the company’s value fluctuates, so too does its stock price. Thus, them investors that buy shares in a company have the hope of that increase of value, allowing them sell them action to a price more.
The actions also are known as titles or values.
forex trader – Why offer actions the companies?
To the ‘ introduce ‘ the company in bag through them actions, allowing to them investors buy titles and be owners of the business, the Board directive can raise funds to reinvest in the company.
If this money is applied wisely for the expansion and it improves, should increase the price of the shares. Thus, the company and its investors depend considerably on from the other.
IPO is also a way that a business owner get a benefit, especially if they have built the company from scratch. The drawback is that they have to give up its exclusive control of the business, accountable to the shareholders.