What Are STOCKS?
Stocks – Represents a shares of ownership of a corporation. In brief, once you become a stockholder of a company, you are owner of a part of that company. For instance, If a corporation has issued 100 stocks in total, then each stock represents a 1% ownership in the company.
This Stocks are usually sold by the owners of a company to gain additional funds to help the company grow. If the company works well and get good results, or even if everyone thinks the company is going to do well, the price of the stock goes up.
Securities - Is an financial value that representing the proof of one’s ownership. The entity issuing the security is called the issuer. Treasure is backed by the U.S. government and including Treasury bills, notes, and bonds.
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Common stock: Usually, these are purchased for get the control of ownership of the companies. The share of profits that investors get from the companies, is called a dividend. Holder of common stocks divides profit in equal pro-rata with stockholder and are able to influence the corporation through votes.
Preferred stocks – Preferred stock is a ‘higher ranking’ stock, where holders have the preference get a dividend, prior any dividends are paid to the holders of common stocks. Preferred stocks have a limited dividend and a particular limited redemption and liquidation price. Usually carries no voting rights.
Warrants – A corporation can issue, share, purchase warrants. To raise additional capital, the corporation issuing warrants. The holder buy stock of the company that issued it. Usually, the price is higher than the stock price at time of issue.
Stock exchange – A stock exchange, is a corporation which provide financial instruments for the issue and redemption of securities as well as other financial instruments including the payment of income and dividends. The New York Stock Exchange is the first stock exchange in the world by dollar volume and the second-based of number of companies listed for trading.
