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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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