How Understand Wall Street How it works

Every business day, billions of shares of stock are bought and sold. How
did these shares originate, and how are their prices determined? For
shares to be traded from one person to another, a company must be created.
How does it begin? Where does the money come from?
In this chapter, The NewBrite Lighting Company is born and its officers
confront the problems that all successful corporations must solve.
Directors are elected, shares are issued, profits are reinvested in the business,
and dividends are declared. In the process, the reader will see capitalism
at work and will gain an appreciation for a great system that has
produced the most advanced economy in the world.

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