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Chapter 1 What is a stock
Hundreds of millions of stocks are bought and sold every day. How are these stocks produced and how are they priced? In order to keep the stock trading among people, we should first create a company. How did this start? Where does the company need funds?
in order to answer the above questions, a newly established company, NewBrite Lighting Company, is fictitious in this chapter. The management of the company is now facing the problems that all successful companies must solve. The company elects board members, issues shares, reinvests profits in production and business activities, and announces dividend distribution plan. Through this process, readers will understand how the capitalist economic system works and have a deep understanding of this system that has created the developed economy in the world.
Xinyao Lighting Company
Jack, a young inventor, has just invented an LED lighting device with higher brightness, higher efficiency and novel design. Encouraged by his family and friends, he decided to turn his hobby of improving lighting equipment into his own career and devote himself to business instead of just selling his invention patent to a large lighting company.
Although Jack himself has some savings to invest in, he is helpless, and the amount is far less than that of starting a business ...