Knowing how to invest in stocks is the desire of those looking for good options to invest their money. After all, this is a great opportunity to make big dreams come true, like getting out of rent or securing a peaceful retirement. If you plan to invest, and see your money yielding more, you have certainly heard about investing in stocks. Want to learn how to invest in stocks?
What is this market?
In short, the Stock Exchange is the environment where corporate stock is traded. In addition to fixed income securities, some types of commodities, currencies, and other assets. The stock exchange has two clear objectives – to organize the trading of assets and to ensure the security of the roles, and data involved in these operations. This means that when making a purchase or sale of an asset, the Exchange ensures that the deal is conducted correctly between the buyer and the person selling the asset in question.
Know the main types of actions
Today, everything is done digitally. The registration of actions is in the electronic environment. Thus, you no longer need any paper documents to prove that you own a stock of a particular company. Even with recent technological changes, it is still common to refer to the action as a role. Apart from printing the stock, the whole process of buying and selling stock was very complicated. Each group gives the buyer a type of right and responsibility in the company.
Common Shares (ON) – By investing in this type of share, you will have voting rights and may participate in company decisions. It is important to know that the more common shares an investor owns, the greater the voting power at a meeting of the organization.
Preferred Shares (PN) – If your choice is a PN share, you will not be entitled to participate in business
decisions, but you will be given preference when receiving company profits such as dividends and other compensation.
Share Certificate (Unit) – These are assets composed of more than one type of share, usually common and preferred shares. The logic is quite simple. It is as if you bought a set of various stocks in one package.
Mid-caps – These are stocks that have an intermediate level of trading on the stock exchange. As such, these assets are often from midsize organizations.
Small caps – If you are looking for cheaper stocks, you will usually find this opportunity in small caps. They are actions linked to “smaller” companies, taking into consideration the financial capital of the organization.
Explore the market
Understanding each existing type is an important step in understanding how to invest in stocks. The daily trading volume and variety of options can confuse investors. Therefore, it is necessary to understand this market well, in order to better observe its movement. To make this task easier for you, at Fyers, you have an innovative platform where you can see which stocks are currently trading and receive good investment recommendations in real-time.
