First, we need to define what is the stock market. It's like a baby running , before it could crawl, same as
stocks. Must know the basic's as they say master the basics then move on to other things. First of all
what is stock's and what type of stocks there are:
Common Stock: Are issued by companies that want to raise capital for an expantion of the business, corporate buy-out , further Research & Developement
Perffered Stock: Are guranteed stock's that pay dividends so if the company dafults on all the debts and is force to sell its assets perffered stock owners would get the first chance at recovery
Split stock: Are stocks that are price high were companies think, that investors wont be able to buy no more due to the overprice stock, so to implied a stock split stock, is for investors to have a two for one stock ownership of stock: if i had 100 shares then they will give me 200 shares more , yes the price will go down in half but when stocks go up in value so those your investment
Since we are going to talk about stocks and not bonds which is a low risk, low return we wont be discussing it in this blog.
Capital Growth: Investing for capital growth has the potential to provide and increase in value, the risk is that a stock's price can decline below value resulting in a capital loss
Divedends: Payout every qauter , from companies that generate profits and share them with investors
Ex: I bought 200 shares of Dell, at $25 that will be $5000 dollars in Capital investment, hold those shares for two years, share price stay the same but div is paid every quater @ .25 x 200x6 which equals to: $ 300
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