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Stocks Basics - What you should know if you are a beginner

Wouldn't it be great? If you could see your income multiply while you sit back without working too hard. Well, it does sounds like 'Just kidding' but it’s really not. You could actually invest your money in stocks and see them grow and get you returns like no bank can ever give you. But before you start your exciting stock market investment journey do know the basics first.

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Stocks Basics - What you should know if you are a beginner

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  1. Stocks BasicsWhat you should know if you are a beginner

  2. What are stocks? • Stocksare the shares of the ownership in a company. • A stock represents an investor's claim on a company's assets and earnings. • Larger number of stocks, your ownership in the company increases. • & higher would be your say in the company decisions.

  3. Types of Stocks Stocks are majorly of two types – • Common Stocks & • Preferred Stocks.

  4. Common Stocks • Majority of the stocks are issued in this form. • Common stocks get dividends a part of the profits. • Paid after paying preferred stocks owners. • Common stocks garner the highest yield in the long-term.

  5. Preferred stocks • Preferred stocks also referred as preferred shares. • Considered as hybrid because it can include properties of both. • Placed above ‘Common stocks’ and below ‘Bonds’. • Flexibility of converting to common stocks.

  6. Types of Preferred stocks The preferred stocks are further divided into different types – • Prior Preferred Stock • Preference Preferred Stock • Convertible Preferred Stock • Cumulative Preferred Stock

  7. Types of Preferred stocks • Exchangeable Preferred Stock • Participating Preferred Stock • Perpetual Preferred Stock • Putable Preferred Stock • Monthly Income Preferred Stock • Non-cumulative Preferred Stock

  8. How to Prepare for stock marketing ? • Self learning from books, internet • Learn from professionals at • Home • Institute • Online • UrbanPro.com helps you by connecting you with Stocksprofessionals, tutors, institutes to take your career forward!

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