It is the different types of stock that make most of investor become confuse. First of all, before we talk about stock trading, reading stock charts or even trading tools we must know what exactly stock means.
The capital stock (or just stock) of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the property and the assets of a business which may fluctuate in quantity and value. (wikipedia)
Sometimes they called stock as shares. Basically there is two type of stock, Common stock and preferred stock. Anyone can purchase common shares, regardless of age, income, age or financial situation. The co-ownership shares is mainly in the company you invest as a company grows and earns money, the value of your stock rises. On the other hand, if the company goes wrong or fails, the share price decline. common shareholders do not participate in the day to day operations of a business, but they have the power to elect the board of directors.
With shares, there are also different classes of shares. The different classes of shares in a company are often called Class A and B. The first class, class A, essentially gives the owner of votes per share equipment more than owners of Class B shares The ability to create different classes of shares in a company exists since 1987. Many investors avoid stock that has more than one class, and stocks that have more than one class are not called common stock.
The type most upscale is of course preferred stock rights. The preferred shares are not exactly a stock. It is a mixture of a stock and a bond. The owner of Preferred Shares is not entitled to the assets of the company in bankruptcy, and the holders of preferred shares to obtain the product of the profits of a business before the owners of common shares. If you think you may prefer this preferred stock, know that society generally has the right to buy the stock back from the owner of the equipment and stop paying dividends.