Stock market and benefits of stock

Wikipedia tells us that A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowd funding platforms.

Historically, the existence of stock market can be traced back to 300 years in the Wall Street case. In our country however stocks and stock markets came to light in the 1960s, 200 years later. Even then, the communist government replaced the monarchy and the emerged capital economy falls apart following the nationalization of big establishments by the regime.

The newly emerged stock markets didn’t saw a light until another regime takes over again. After 1991 the government takes various measures to support the economy and well with that different share companies start to emerge again. And with that the stock markets start to revive.

Three decades after that, the country is still working to institutionalize Stock market. Today there are many big companies established in Ethiopia by shareholders or sold stocks. A lot of people are investing in share companies more and more each passing day. Big corporations are backed by the stocks they sell. And economies are lifted by this kind of investment.

By now, you understand the importance of stock markets. So if stocks are this much important for the economy, what exactly is the benefit of shareholders?

But before that, what is a shareholder?

‘A shareholder of a corporation is an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation. Shareholders may be referred to as members of a corporation’

Shareholders represent ownership in a company and claim dividends on a portion of profits. And benefits of shareholders include ownership, voting right, gains, right to transfer ownership, dividends and limited liability. Common stock, through capital gains and ordinary dividends, has proven to be a great source of returns for investors, on average and over time.

To sum it up a stock market also known as equity market is the aggregation of buyers and sellers of stocks. A shareholder is someone who has purchased at least one common share of a company. And shareholders are entitled to vote on corporate issues and are entitled to declare common dividends.

Now a days millions of people invest on stock based on their choice and preference, to the dream they want to see come true.

So, what is your dream you want to see come true, Digital transformation, empowered generation, inclusive opportunity, higher rate of return on investment, credibility or all? Well if you are either aiming for one or two, with Ashewa you will have it all.


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