Investing in stocks: what you need to know

Investing in stocks is now possible for everyone. However, such a transaction is not to be taken lightly. It can present certain risks, even if these returns are very advantageous. Read this article to the end to get an idea about investing in stocks.

What is meant by an equity investment?

First, each share of stock you own is a tiny part of the company that sold it. To learn more about these financial investments, turn to this site. Stocks are, in effect, securities of ownership. They are simple ways to resell, transfer, or buy back shares in a company. Most companies are divided by the number of shares. The owner of a company is therefore the one who holds all the shares of this company without being obliged to manage it. Each share is then worth a part of the total value of the company. This value is however arbitrary and the number of shares is factual. So as a shareholder of a company, you are called upon to participate in the major strategic decisions at the meetings. However, it is possible to buy shares in unlisted companies. Since some companies do not go public.

The types of shares available

Common stocks are the most common. These are the ones that are available to you first among many others. They provide investors with an increase in capital, voting rights, a source of dividend income and favorable tax treatment. On the other hand, common stock is bought and sold more quickly than other securities (real estate, jewelry, art, etc.). On the other hand, there are also preferred shares. These are reliable sources of income. The dividends here are fixed, higher and paid out faster than those of common stock. In addition, preferred shares offer a variety of stock types with diversified characteristics. Generally, dividends are paid quarterly. They can be reinvested by investors to benefit the growth of the company.