Investing in stock

In this article I am going to give information about the "stock".

As a beginner you should first understand the stock market. A stock market is the public market where company stock and its derivatives are traded at agreed price.

Now question arises what is stock/share? The stock is divided in share. Every share has a face value you can understand it as value per share. A share of stock is the smallest unit of ownership in a company. If you own a share of a company’s stock, you are a part owner of the company.

Stock is divided in two categories:

1. Preferred stock, and
2. Common stock.

Preferred stock holder don’t have voting rights whereas common stock holder got voting right they can influence the corporation (objectives and policy, stock splits, and electing the company's board of director) .

No fixed dividend is paid out to the common stock holder, but in case of preferred stock fixed dividend is paid out.