First, in order to know what stocks are, one must understand the stock market. The stock market is a market in which company shares or stocks are traded. Many companies are comprised of a certain amount of stocks. These are percentages of ownership for companies. Often, company stocks are bought and sold as the prices rise and fall. The stock market is where one can buy and sell stocks for several different types of companies.

Now that the definition of the stock market has been taken care of, it’s time to examine the various types of stocks. Not all companies have the same types of stocks. In fact, stocks differ according to several different aspects. The different classes of stocks depend upon a great many factors. For beginners, it’s mostly important to understand the difference between common and preferred stock.

Common stocks are the types of stocks that can be bought and sold by just about anyone. Stockowners get a share in deciding on the major decisions of the company in question. Typically with common stock, investors are given one vote per share. This means the more stocks one owns, the more votes they can cast on major corporate decisions. Generally speaking, common stocks have been known to yield the highest returns. This is because common stocks also bring with them the most amount of risk of all of the stocks. Typically, when it comes to the stock market, the most rewards come from the most risks taken.

Preferred Silagra stock is a different type than common stock. It is different for several reasons. First, typically one who owns preferred stock will not have the same voting rights as one who owns common stocks. They are also less risky as they guarantee a fixed dividend at all times. Because this type of stock is less risky, it also typically gives fewer profits.

There are various classifications of stock within these two categories mentioned above. Penny stocks, for instance, fall into the common stock category. They can basically be summed up as shares in a company that can be bought or sold for less than $5. There are micro cap stocks which are typically stocks that come from companies with a small market capitalization. There are large, medium, small and micro cap stocks available. Indeed, because there are so many different types of stocks, it can be confusing to navigate the stock market at times. Once one studies the various types of stocks, though, it becomes Brand Cialis easier and easier to learn how to invest.

Author Bio: (http://www.pickinpennies.com/) Penny stocks are publicly traded companies whose shares trade on the Over the Counter Bulletin Board “OTCBB” or on the Pink Sheets.

Category: Business
Keywords: penny stocks, penny stock alerts, micro cap stocks