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Stocks Shares | |||||
Stocks
Shares Stock
is the capital raised and issued in the form of shares. 1.
Different types of stocks 2.
Shares and its types 3.
Analysis-two types Stocks
are of several types and generally classified as common stock, preferred
stock, Dual class stock, treasury stock. Common stock are known as ordinary
shares, and commonly held in a concern. They give rights to the Shareholders
for voting rights in decision matters of the concern. Preferred
stock, are known as preference shares, as the name implies these have
importance over common stock as in the case of dividends and assets allotment.
They have voting rights in the issuance of new shares, to get the acceptance
of possession of company, to elect the important positions in the company;
however they are not a part of companys decision matters. Treasury
stock are one which can bought back from the public .Treasury Stock are
not outstanding. Stocks
have derivatives whose price is based on the price of the underlying stock.
They are of two types, one is futures and another is options. Futures and options
are contracts in which trading depends on the contract maturity date and
it ends at that date. Stocks
and shares are related to each other and differ by when they express.
Stock represents the capital and that comes out to the public through
shares. Advancement
of trading through many trading technologies, researcher tools and readily
available information on shares through various resources makes even a
common man to invest in stocks and shares. In one way
Stocks Investment may be a risky play since it needs many things
such thorough basic trading skills one has to do even for a smaller investments.
They give a huge rate of return compare to banks and other financial firms.
Traders should have the plan to invest in stocks and shares otherwise
they would go in to loss by improper selection of the stocks at the wrong
time. Each
stock are categorize in to sectors to which belong to. They are so many
like energy, banking, cement, metal, financial sectors etc. These stocks
have the value in the market that is market capitalization and with this
value they are categorize to various caps; Large cap, Mid cap and Small
cap Other
is cheapest stocks, highest yielding stocks, poor mans stock, medium
stocks, distressed stocks and momentum stocks and so on. Buying
shares is done when particular stocks are listed in the stock exchanges
where the buyer and seller do their trading. Buying and selling of shares
involves a tedious process, but due to advancement of electronic trading
system it has become an easy process. Stocks are brought through stock
brokers who involved directly with the stock exchange. They are stocks
of another country where trader can invest in them and are called International
stocks. Stocks
price up and down movement and various factors and changes are analyzed
and studied through fundamental analysis and technical analysis. Fundamental
analyses the financial statements of the stock. This tells the companys
quarterly results, sales and production and most of the traders look in
to this before they invest in. Each
country maintains its own stock exchange and in that stocks of host countries
can list and trade there.
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