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Stock and stocks

What is a Stock?

Stock is a certain percentage of any individual or corporation to a certain business enterprise. Owning a stock means having a share to the ownership of a company, including its assets and liabilities. And this does not limit only to these because this includes profit, losses, equity and even depths to some extent. Measurable of course depending on how many shares do you have or how big is your stock in the company. The more the stock you have or the bigger percentage you share, the bigger the parallel to whatever consequence of the business’ outcome.


Stock Holder

Being one of the stockholder does not guarantee that you all have the power in the company, it is just that you are one of the members that may put up a decision whenever necessary because you are one in those lucky individual Stock holder has power IF they decide to use it.who has purchased a stock on that company. And because you are considered as one of the many owners, your are guaranteed righteous to make a vote in any votation process as you also have the rights to any of the ownership of the company such as furniture, gadgets, office supplies or anything that the company owns.

You also have a share on any trademarks and identifications of the company and most especially to all the business transactions that occur in the enterprise during your time being as a stock holder, but there is always a limitation in all the aspects of the business such as in a daily routine of operations and so port.

Of course, you have a say and you can always suggest what do you think is best but you cannot mandate whatever you have in mind as quickly as you wanted because there are also some members that have their own ideas regarding that matter.

For example, you are a stock holder of the MGM Grand Casino in Macau; you can always call MGM Grand Resorts or Ms. Pansy Ho to whatever changes you may think is best, and they will raise it during the Board Meeting and have a brainstorming about it, or you may attend the meeting and raise your point yourself for your idea to be heard.

But this does not mean that you all have the power in the MGM Grand casino and walk-in there every day and have a free casino games. Or should we say, you are a major stock holder of LVMH or MOET HENNESSY. LOUIS VUITTON, you can always suggest in the design, color or any product qualities on any of your line of industry but you can never bring your sister to the advertising office to become the endorser of your products. There should always be collected votes that came from the other major stock holders before it can be decided on who will be your models.

The Rights;

One important task you should always remember as a stock holder should be the knowledge on the updates on how the business is going. The management of the business is reliable on explaining to you how it happened or what would be the expected output for a particular time bracket. It is not only reporting to you as a stock holder is the management’s responsibility to you; the management should in fact increase the value of your shares in particular and enhance the strength of the company in general.

If you think there is no progress with your earnings, or the quality of the company to its line of industry is stagnant, you may decide to vote for the expulsion or removal of the management, but still this has to be decided by the majority of the members because it is not only you who owns the company. Theoretically, this is the definition of being a stock holder, perhaps in dreams; this is quite close but never to reality.

Expanding business results it more valuable stocks.

The Reality;

In modest honesty, the truth is that before you can have your voice out for a particular matter, you should not be just “one of those” investors or have very minimal shares on the company. To become one of the major stock holders, Stock certificateyou should have if not the biggest share, the largest percentage stock in the company.

In a multi-billion business enterprise, to become one of the major stock holders, you should have at least another billion-operated company of your own. But this is not the case when you are just an ordinary share holder, especially when your objective is not to manage the company but only to wait for your own share of the profit.

The Identification;

Being a stock holder would be identified by sometimes a “stock certificate” during those times that is not yet that high technologically managed, as majority of the big companies nowadays only keep this certificates via online or kept on their data storage. This would be the proof that you own a particular share in the company. This is sometimes called “holding shares”.

There are times that if the stock owner wants to sell his shares, he should have this certificate printed and he would offer this certificate to someone who is interested to buy his share. This is also the basis of your profit percentage which is called “dividends”. Of course again, the larger the number of your shares, the bigger the earnings.

One of the most important texts that can be found in this certificate is the fact that your stock ownership would not and never include company’s liabilities and debts. Meaning if the company that you invested in goes bankrupt and could no longer pay shortcomings and credits, you will not be liable as you are just one of the stock holders. But if you are a good business entrepreneur, before this fall can happen, you should know what to do so that you can avoid this mess.

Tips on Buying Stocks!

Buying or selling stocks could be easy if you are doing these several times already. For the neophytes who wanted to venture on this kind of business, it is very advisable to take courses first regarding buying or selling stocks before venturing into this kind of endeavor. The following texts are just simplified and summarized steps of buying a stock. Brain showing what is going on inside the mind of a person that are going to buy stocks.Please be noted that this would be applicable only with some stock market agency and may change without prior notice for whatsoever purposes for that matter.

  • Self-realization Strategy – it is well known to everybody that what would you use to purchase a stock could be from your own blood and life, meaning it is earned with prior effort and time, so before using it to venturing to stock market business, you should analyze first your own personality, characters and your capability. It is important to know how tolerant your risk when it comes to business venturing. By this, you would be able to know what would be your investment strategy, your limit to spend money to whatever consequence maybe and your scheduled time to personally attend and focus on your stock shared.
  • Stock Market Study – begin with a dummy shared stock to a particular company and consistently record whatever the results are. Never forget to be aware on the trading rules and regulations because this might affect your focus once a single rule was misunderstood. If the dummy paper trade is obviously in good patterns, meaning you are making an earnings with your investment strategy, you probably are ready to do it in reality but if vise versa, you should think of another strategy that might fit your needs and wants. However, it is still different when you are doing it with real money as many other factors are already involved like your insecurities to the subject, your fear to lose your money or there could be greediness that may arise within you if ever the result is positive.
  • Window Shopping Spree – there are a lot of brokerage services that may convince to recruit you to buy their stocks, but be knowledgeable of their strengths and weaknesses, their advantages and disadvantages as this would help you balance the negative from the positive. Find a brokerage company that would enlightens you to all the factors that are necessary to be understood such as the availability of the shares for short and minimal funds, the crystal clearness of the rules regarding discounts for a larger and bigger percentage of stocks buying and most especially all the charges that sometimes invisible for the buyers as it is not clearly stated. Try to realize that developing an investment strategy could take time and would not always go into your way, so again it is important to know your risk tolerance.
Euro made in gold coins.
Edited by Henrik Jørgensen
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