| When you are new to the stock market there are a | | | | preferred stockholders. In contrast if you bought |
| lot of terms you will come across that are going to | | | | shares you would be a common stockholder in that |
| be confusing to you - at least at first. The trick is not | | | | company. |
| just to find out what they are, it's to become familiar | | | | The advantage of being a preferred stockholder is |
| with them and what they mean. | | | | that you will get preference in receiving a payment |
| A good example of this is common stock and | | | | for your shares. Needless to say this can be a good |
| referred stock. These are basically two different | | | | thing, but it depends on how you want to invest in |
| forms of stock that you can buy. The names will | | | | shares in the first place. It is easier to be a common |
| give you a rough idea of what to expect, but don't | | | | stockholder than it is to be a preferred stockholder, |
| make the common assumption that you are better | | | | and many people like the flexibility of this as they can |
| off buying preferred stock. While the names do refer | | | | buy and sell shares whenever they see fit to do so. |
| to what each stock is all about, they can give you | | | | You do often stand a better chance of receiving a |
| the wrong idea to a certain extent. | | | | healthy income from your shares if they are of the |
| Most people end up buying common stock when | | | | preferred variety. However you also need to bear in |
| they start dipping their toes into the stock market. | | | | mind that because preferred shares are slightly more |
| Common stock is common knowledge, you might | | | | secure than common shares, they won't bring in the |
| say. Basically when you buy this type of share you | | | | potential of a much higher income. As with all types |
| are buying shares in a company or organisation. Most | | | | of shares you need to do your research before |
| people are familiar with this kind of stock but when it | | | | deciding which ones to invest in and which ones to |
| comes to preferred stock you might be a bit | | | | steer clear of. It could depend largely on whether |
| confused as to what it means. | | | | you want an ongoing income from your shares or |
| Preferred stock is concerned with stockholders. | | | | something a bit different instead. |
| Some companies have stockholders that are called | | | | |