Who owns the large American companies that produce cars, washing machines, and television sets? They are owned by a large group of people called stockholders.
A company must have money to build factories and to buy machinery. To get this money, it sells shares of stock(股份). Each share of stock is a share in the ownership of the company. The person who buys a share of stock becomes a part owner of the company. He is called a stockholder. A company can have thousands of stockholders. Sometimes a very large company is owned by millions of stockholders.
Few persons can afford to buy a whole company, but the average individual can become part owner of a business. He can save his dollars and buy a share of stock in a large company. A person does not have to be wealthy to be a stockholder.
When a company makes money, each stockholder may receive a dividend(股息) check, which is his share of the profits(利润). Parts of a company’s profits are not paid out to the stockholders. This money is used by the company so it can grow larger. If the company does well, its shares of stock become more valuable.
More than 20 million people own shares of stock in America’s companies. By owning stock, they are helping America’s businesses grow. They are also putting their money to work to earn more money.
The story makes you think that _____.
A.a farmer is not allowed to buy the shares of stock |
B.if a company does well, its shares of stock have no value |
C.a person may own a part of the company that makes TV sets |
D.the only people who can buy stocks are those who are wealthy |
A dividend is the stockholder’s share of the _____.
A.company’s profits |
B.company’s savings |
C.company’s income |
D.products made by the company |
Why do companies keep part of their profits?
A.They want to buy the shares of stock, too. |
B.They cannot find all the names of their stockholders. |
C.They use the money to help the company grow larger. |
D.They think they have sent their stockholders enough money. |