| The news of stock market not doing well was | | | | assets. |
| common and frequent during the economic downturn | | | | Preferred Stock also means an ownership in the |
| last year. Perhaps many of you might have also | | | | company but it does not include any voting rights. |
| decided not to invest in them. This must be more | | | | However, the dividend is usually fixed in this type of |
| common with people who have not been regular in | | | | stock ownership. |
| share markets and have been almost an outsider to | | | | Purchasing the Stock |
| it. But before you decide that you never want to | | | | After you have made up your mind about buying |
| invest in them, you must first learn about the basics | | | | shares you will have to decide how you will buy the |
| of share trading. | | | | shares. It can be done in two ways. The first is |
| Here are some highlights of the share market: | | | | through full service broker. These brokers will offer |
| Stocks | | | | advice on financial planning and how you can select |
| If you have never invested before, the question of | | | | the stocks in which you want to invest in. But this is |
| what a stock is must be lurking in your mind. In the | | | | one of the expensive ways of buying shares. But in |
| simplest words, it is the partial ownership in an | | | | case you do not have much time for understanding |
| organization. If you buy shares of a particular | | | | the nuances of share trading then this is the best |
| company then you are entitled to a particular portion | | | | option for you. |
| of the company's profits. These are paid in the form | | | | The other way is through discount brokers. These |
| of dividends at different times. | | | | brokers are different from the service brokers. |
| Types of Stocks | | | | These brokers work with investors who do their |
| There are basically two types of stocks. These are | | | | research on the stocks themselves. |
| common and preferred. Common represents the | | | | Stock Trading |
| majority of the stocks. It refers to ownership of a | | | | These stocks are traded on the exchanges. This is |
| part of the company and also claim on a part of | | | | the place where buyers as well as sellers meet and |
| profit of the company that may be paid in the form | | | | then decide upon a price. There are physical locations |
| of dividends. This amount however fluctuates and | | | | and over the counter exchanges also. The over the |
| there is no guarantee of a fixed payment. They also | | | | counter ones are carried out virtually through an |
| include voting rights. However, in the long run, it may | | | | electronic medium. So, trade in shares but only when |
| involve a lot of risk but they are the most paying | | | | you have full knowledge about them. |