Stock are shares in a corporate business, attested by certificates of ownership. The above image is an example of a stock certificate used in Malaya in the year 1970. The stock certificate is one of a plantation based company. Today, such hard copy paper certificates are no longer in use. These hard copies have been replaced through technology advancement and they take the place as a transaction entry in regular statements. The abolished use of stock certificates have reduced the original quantity of these hard copies to almost depletion and only a handful is still being kept as souvenirs. Today and future young investors would find these blog post useful as a historical knowledge and students would benefit to refer this knowledge as a basic reference in their study paper.
Each share represents a share in the ownership of the company. Dividends on the stock represent a division of the surplus of the business of that company. Stockholders elect a board of directors to oversee the operations of the company and they have a voice in the management of the company in proportion to his holdings. These stockholders own voting stocks.
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