What is Corporation definition/concept

The joint- stock company is nowadays the type of company that tends to reach the greatest reach in the market. Perhaps, this circumstance is due to its internal organization that allows it to raise capital for its operation. In fact, a corporation is characterized by having a capital divided into different parts called shares. Each of these parts grants its owner different faculties of a political and economic nature. In this way, the stock is exchanged for money, allowing the company to anchor itself.

In turn, shares are traded on the so-called secondary market and set their price thanks to the game between supply and demand. They are reasons for huge speculation by different economists who look for a certain price hoping that it will rise over time. In relation to and in line with the development of financial markets, different methods or forms of analysis have been developed that seek to achieve this objective in the most efficient way possible. The best known are technical analysis and fundamental analysis. Corporation

Technical analysis is fundamentally based on the observation of charts that show the evolution  of the price of a given stock. It is the typical graph that shows peaks, valleys, etc., as a result of the different trends that can be provided. The technical analyst tries to find patterns in these charts that are repeated frequently and that make it possible to determine what evolution the price of a certain stock will have. This circumstance makes many scholars of the subject question whether it is possible to determine the past from the future, a circumstance that makes this type of analysis debatable.

In the case of fundamental analysis, what is sought is to understand the internal structure of the corporation. Thus, what is tried is to contemplate their balance sheets (which must be public) in order to understand different variables such as debt, earnings, etc. After arriving at a deep analysis, what is tried is to explain the theoretical value of the corporation, and as a consequence, of the action. If this theoretical value is less than the market value , then it is recommended to buy.

The development of joint stock companies has its counterpart in the development of capitalism as an economic system , the possibility of associating capital in order to produce goods or services to obtain an income is a full expression of the system . The profound social and economic transformations of the last centuries are undoubtedly linked to this form of commercial organization.

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