It's been a long time since I posted in this blog since I was busy with new projects this year and studies (about Options, Korean stock market and Derivatives). However, I have several friends who occasionally ask me about the stocks basic so I decided to continue this blog.
What is stocks?
Stocks is a piece business own by the shareholders. To understand it, let us take SMPH as an example.
SMPH or SM Prime Holdings is the company that own and operates the SM Malls in the Philippines and China. This company is divided into 13,898,943,067 outstanding shares or stocks. Owning one of these stocks will make you a part owner of those malls...so does it mean I can go to any SM mall and do a shopping spree for free? Or can I demand from the sales lady to prioritize my purchases during the midnight sale since I'm a part owner of SMPH? Dream on...