The positive effects include the hope that the stock will increase in value. In other words, if it increases in value, other investors will want to own part of it and the stock prices will rise. Some companies also pay a dividend.
The negatives include the fact that some companies lose value and stock prices go down. Also -- you may find that you don't agree with the ethics of a specific company.
The negatives for the company include large shareholders who want to run the company differently than the company management wants it run.
Check this site for more information.
http://www.themint.org/kids/what-is-the-stock-market.html
I have to write about the positive effects of an investor buying stocks of a company but I would like to know about the negative affects so I could add them to my essay but I cant really understand how it could be bad for an investor to buy a stock of a company,.. could you help me?
Is there a way that when a investor buys a stock it could be negative to the company?
3 answers
Thanks
You're welcome.