In this post, we will cover the Different Types of Stocks that can be available for Online Stock Trading. In our experience, the different types of stocks confuse most new investors. It is important to understand what type of stock you are buying, and what are the various types of stocks that a company has issued already, or is planning to issue.
Common Stock is a term that you will hear often. Anyone can purchase common stock, regardless of age, income, age, or financial standing. Common stock is essentially part ownership in the business you are investing in. As the company grows and earns money, the value of your stock rises. On the other hand, if the company does poorly or goes bankrupt, the value of your stock falls. Common stock holders do not participate in the day to day operations of a business, but they do have the power to elect the board of directors. Continue reading