A shareholder is anyone who has complete or partial ownership of a company. Someone who owns one share of a multi-billion dollar company as part of a modest investment portfolio is a shareholder, as is someone with a controlling interest in a technology startup. Perhaps the easiest way to think through the question of skills is to look separately at passive versus active shareholders.
A passive shareholder buys shares in a company as an investment but takes no part in actively running the company. This sort of shareholder needs a solid understanding of what makes a good investment but does not need detailed internal knowledge of how the company works. Often choice of shares is as much about balancing a portfolio or mirroring an index as about looking at individual businesses in detail. The basic skills required are some understanding of the nature of investing and finance, basic economic knowledge, patience, some mathematical skills, and discipline (avoiding emotional buying and selling).
An active shareholder needs more detailed knowledge of the specific industry and a strong background in accounting and finance to understand what measures will increase the company's profitability.
Saturday, June 2, 2018
What skills do business shareholders need?
Subscribe to:
Post Comments (Atom)
Why is the fact that the Americans are helping the Russians important?
In the late author Tom Clancy’s first novel, The Hunt for Red October, the assistance rendered to the Russians by the United States is impor...
-
There are a plethora of rules that Jonas and the other citizens must follow. Again, page numbers will vary given the edition of the book tha...
-
The poem contrasts the nighttime, imaginative world of a child with his daytime, prosaic world. In the first stanza, the child, on going to ...
-
The given two points of the exponential function are (2,24) and (3,144). To determine the exponential function y=ab^x plug-in the given x an...
-
The only example of simile in "The Lottery"—and a particularly weak one at that—is when Mrs. Hutchinson taps Mrs. Delacroix on the...
-
Hello! This expression is already a sum of two numbers, sin(32) and sin(54). Probably you want or express it as a product, or as an expressi...
-
Macbeth is reflecting on the Weird Sisters' prophecy and its astonishing accuracy. The witches were totally correct in predicting that M...
-
The play Duchess of Malfi is named after the character and real life historical tragic figure of Duchess of Malfi who was the regent of the ...
No comments:
Post a Comment