|
|
|
THE GREAT STOCK MARKET SECRET
THE ALCHEMIST by AL THOMAS THE GREAT STOCK MARKET SECRET When the stock market is going up and all your stocks and mutual funds are making money you feel like a genius. It is too bad that some folks don’t remember what happened in 2000. Of...
|
A Sucker Born Every Minute
An article about choosing safe investments. First published in our client newsletter “The Balanced Report” Spring 1993 This old adage should really be rephrased as "There is a sucker born every minute and two to take him". In our work we are...
Three Reasons to Start Derivatives Trading
If you are looking for a trading option outside of traditional stocks and bonds, derivatives trading may be a good option. Derivatives pay off over a period of time based on the performance of assets, interest rates, exchange rates, or indices. The...
|
|
Buy and Hold Investment Strategy
Buy and Hold Investment Strategy "Buy and hold" is one of the most heralded investment strategies promoted today. "Buy and hold" is also one of the few investment methods where you are guaranteed to lose money 2 out...
|
|
|
|
|
What Is A Company?
By legal and business definitions, a company is a business
enterprise, often times engaged in an industrial or commercial
enterprise, a group of people associated through a common goal
or financial objective. Companies vary in types, depending on
the services offered and the laws governing such financial
institutions.
Different types of companies:
Finance company
This type of company provides long-term or short-term loans to
their clients. They profit through the loans' interests, but
first makes sure that the individual asking for the loan is in
good credit standing.
Holding company
This company's sole purpose is to own stocks of other companies,
therefore giving it the freedom to control management and other
investments. Already considered a corporation, a holding company
offers no products or services, and often provides added
security and financing to its companies.
Growth company
Companies that exceed average growth in its field, and even the
over-all economic rate of the country due to high sales and
income return are often classified under this type.
Investment company
This is a financial institution that earns income by holding and
investing in securities issued by various companies or by
government agencies, as well as sell shares to interested
individuals.
Limited liability company
This is considered a state of legal entity, as well as being a
financial institution. It is also defined as a corporate
structure where those who own stocks and shares have limited
liability where the company's activities are concerned.
This type of company has been made possible to establish only
recently, having existed before in German-speaking countries.
English-speaking countries have followed
suit because of the
advantages of a partnership structure and not being double-taxed
as traditional structures dictate that a company be taxed once
for income, then twice for distribution of dividends.
But even as this type of company has a lot of advantages in
terms of flexibility, it also has it disadvantages one being
that there are less people who are willing to invest, as this
type of company is somewhat non-traditional.
Joint-stock company
This is defined as a company that pools together its members'
funds for capital, where transferable shares represent ownership
interest. In relation, a member's share correlates to his power
or control over the company, but also makes him equally liable
to company debts and actions.
Mutual company
Also referred to as a co-operative, this is considered to be a
private company, and is comprised of, and owned by, its
customers. The common goal is to raise funds from the members,
which will then be used by the same group of people through
various services.
There are also several functions that are similar to those of a
bank's, only that members can loan from their mutual company
with lower interests and a more flexible payment scheme. This
kind of company is also commonly seen in the insurance industry,
such that the finances of the company heavily rely on its
exposure and membership.
Trust company
Most often in partnership with a bank, this kind of company
engages in being a trustee in handling trust funds and financial
planning for individuals or estates at a custodian level.
About the author:
James Monahan is the owner and Senior Editor of CompanySpot.com and writes
expert articles about company.
|
|
|
|
|
|