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STOCK MARKET
Stock Market Investment- Basic Principles
If Well worth investment, the stock market is a bit intimidating to those who are just setting foot there. With so many different types of stocks, bonds, and alternative investing vehicles out there, a beginner would know where to begin.
Advantages of Stock Market Investment
1. Possibility of High Returns :
Long-term high return capability is achieved by the stock market against most alternatives of investment.
2. Liquidity :
Shares are traded in open markets; hence acquiring some cash in times of need becomes rather easy.
3. Diversification :
Investing in the stock market diversifies your portfolio by minimizing risks and maximizing profit chances.
Types of Shares
1. Common Shares :
Shares representing ownership of a company and giving the holder voting rights.
2. Preferred Stock :
Priority in distribution of income and assets as compared to a common stock, but with little or no rights to vote.
