First Encounter With Stock Market
Stock Market and Trading was introduced to me by my colleague
and friend way back year 2015. I got hooked up and amazed during the conversation because of the
high potential rewards of this investment instrument. With the hope to gain
fast and quickly, I started opening a Trading account through a Brokerage even
without the knowledge and know-how, how it works with the shinning hope to be a
Millionaire someday. By the way what is Stock? and Brokerage firm or Broker?
A stock (also known as "shares" and "equity)
is a type of security that signifies ownership in a corporation and represents
a claim on part of the corporation's assets and earnings.
There are two main types of stock: common and preferred.
Common stock usually entitles the owner to vote at shareholders' meetings and
to receive dividends. Preferred stockholders generally do not have voting
rights, though they have a higher claim on assets and earnings than the common
stockholders. For example, owners of preferred stock receive dividends before
common shareholders and have priority in the event that a company goes bankrupt
and is liquidated.
A broker is an individual or firm that charges a fee or
commission for executing buy and sells orders submitted by an investor. A
broker also refers to the role of a firm when it acts as an agent for a
customer and charges the customer a commission for its services.
In the past, only the wealthy could afford a broker and
access the stock market. The internet triggered an explosion of discount
brokers, which allow investors to trade at a lower cost, but don't provide
personalized advice. Due to the emergence of discount brokers, almost anybody
can afford to invest in the stock market. For list of registered broker you can refer to this link PSE Brokers.
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