| Most first time stock traders will be confused by the | | | | when the company goes bankrupt or does poorly. |
| different types of stocks in the stock market. This | | | | Common stock holders have the power to elect the |
| confusion will cause most first time stock traders to | | | | board of directors but they are not involved in the |
| buy the wrong stocks or turn away from the stock | | | | daily operations of the business. |
| market altogether. Knowing what types of stocks | | | | Apart from the common stock, another type of |
| are available in the stock market and what the | | | | stocks is the stocks that are divided into different |
| individual types of stocks means is important if you | | | | classes. In one company, the different classes of |
| want to succeed in stock trading | | | | stock are often called Class A and Class B. The stock |
| Most often, you will come across the term "Common | | | | owner of the first stock class, class A will be |
| Stock". Common stock can be purchased by anyone, | | | | awarded more votes per share of stock than class B |
| regardless of income, age, or financial background. | | | | stock owners. This ability of creating stocks of |
| Common stock is an important part-ownership of the | | | | different classes in a company was created in 1987. |
| company that you are investing in. The value of your | | | | Stocks with different classes are not called common |
| stock will rise as the company grows and earns | | | | stocks and most investors will avoid these types of |
| money. Alternatively, the value of your stock will fall | | | | stocks. |