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What are stocks?

My previous post tells about Microsoft acquiring Yahoo's outstanding stocks for $31. This news may be of interest to a few who knew what it meant. Well, to give a few information to those who don't know yet, what are stocks really? Wikipedia defines a stock as " the capital raised by a corporation through the issuance and distribution of shares." Before I explain, let us understand the different types of business. If I want to have a business from which I solely own, that is a "sole-proprietorship" type of business. If on the other hand, I have a partner or two in a particular business, the type of business would then be called a "partnership". If a business has many owners, then it is called a corporation. A corporation must have at least 5 members (owners). These owners are called shareholders. Each will have a share of ownership with the company depending on how much they have invested. This "share of ownership" is called a "st...

Microsoft to buy Yahoo

Wow. This is a very interesting news. Just recently, Microsoft, a software giant made an offer to Yahoo to acquire their outstanding stocks for $31 per share. This would be equivalent to $44.6 billion total equity. Yahoo's closing price as of January 31, 2008 was $19.18. This makes Microsoft's offer equivalent to a 62% premium. The question is, would Yahoo's board of directors consider the offer? If this union proceeds, will it have a great effect on Google's economic performance? Google right now is on top of Search Engines and on-line advertisement. Will the Microsoft-Yahoo tandem end this dominance?