15.9 Lessons learnt

  • Market capitalization is the value of a company multiplying the price per share x shares outstanding
  • If you buy and sell stocks, you are participating in an official and regulated market. The fact that there are buyers and sellers trying to trade for a certain price is not different than for example a street market. But of course, specific rules and conditions are in place
  • To invest in the stock market you need an online broker or a bank
  • The main purpose of the stock market is to provide access to be able to buy and sell stocks
  • Stock exchanges contribute to economic growth
  • IPO’S or Initial Public Offerings is the moment a private company becomes a public company. 
  • The valuation of the company is extremely important to determine amongst others the number of shares that will be listed and with that the market capitalization.
  • All shares together are called ” the float”.
  • The numbers of shares the company can list to the public are called ”the Authorized shares”.