Stock market

The stock market is where companies seeking long term funds to do business or to improve on their services and operations,build new factories and all that;source for money. It is also where investors sink their money in order for it to bring return to them.Therefore,the stock market becomes a ready instrument referred to as the stock exchange.In stock investment,you are not giving somebody money for business,but you are putting your money in an already existing business monitored by proven agencies,that give you the advantage of studying the business critically before investing your money. THE RIGHT ISSUE The right issue is the sale of company shares to existing shareholders at a price lower than the current market price.The advantage here is the ability to buy at lower than the current market price.It is the exclusive right of the existing shareholders to buy such shares. COLLATERAL FOR LOAN Shareholders can use their physical certificates of share ownership or the statement of shareholdings as collateral to secure loans from banks and other financial institutions while still reaping the benefits and dividends.