The various kinds of stocks are what scares the majority of first-time buyers. The uncertainty causes individuals to fully turn away from the stock market, or to make unwise investments. You need to know what types of stock are available and what it all means if you are going to play the stock market!
1. Common Stocks
Common Stock is a term you can hear very often. Anyone, regardless of age, salary, age, or financial standing, may buy common stock. In the corporation you are investing in, common stock is part ownership. The value of your stock increases as the business expands and earns profits. On the other hand, if the company does poorly or goes bankrupt, the value of your stock falls. Common stockholders do not participate in the day to day operations of a business, but they do have the power to elect the board of directors.