Stock Overview - YouTrader
Stocks transaction has a primary goal to facilitate trade in stocks (or equity) between buyers and sellers. Stock investment essentially makes an investor a part owner of the company, or a shareholder. As a result, stock ownership gives the holder a right to claim a portion of the company's assets. YoutradeFX offers you the opportunity to trade stocks with a variety of Forex rebates.
The stock market is where the trading of stocks takes place. The issuing and trading of stocks can be done over the counter (OTC) or via stock exchanges. A stock market is comprised of what is known as primary and secondary markets.
The primary market allows companies to raise capital by selling ownership shares to investors, after an underwriter helps establish a price for their shares. A sale of company stock in the primary market is called an Initial Public Offering (IPO).
When investors buy the shares they are in fact speculating on gains that could accrue from future profits. When the primary investors sell their shares at a later date to other buyers, they do so in the secondary market.
A company can issue both common and preferred stock. The owner of a common stock can earn dividend and has the right to vote in a shareholders meeting. Essentially, he or she has a stake in the operation of the company. While holders of preferred stock are not given the right to vote, they are considered to be preferred share-holders in that they enjoy a prior claim (as against common stock holders) to assets and profits, and receive first preference in payment of dividends, if any.
Stocks of companies that are modestly sized and likely to remain so are known as "penny stocks”.These are usually priced less than $2. Contrasting with penny stocks are “growth stocks” These are issued by companies that have shown or are expected to record rapid growth. Larger, better known companies, such as Intel, typically issue blue chip stocks.
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