The term stick seems a simple word but actually contains many differentiations. You have to see want stock you want to have. The stock of any company represents his ownership. But they are still different from one another. Therefore you must know that how they are different and how you should deal with different stocks. All the different stocks include distinct conditions and rights with them. Hence you should select the stocks in a way that they can provide you with the best returns.
People can buy these stocks in the form of documents or even in virtual format. Now the stocks are traded through online modes. These online accesses are providing much more to the traders. People start to trade to earn a good amount of funds. Thus it beneficial for them to know about different types of stocks.
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Distinct types of stocks availed by the stock market
All the different types of stocks will provide you with the rights. Accordingly you should know what rights you hold with all stocks. A trader can avail a lot of stocks, but here we will just describe a couple of them. So here are the 3 distinct types of stocks one can trade in the stock market.
- Penny stocks
These stocks are not that popular and are not even know by many traders. Penny stocks are great for traders who are looking for a good amount of money. They can expect to have massive returns from them. People who trade with small companies must know them as these are the like common stocks are them. These stocks contain a minimal amount of IPO subscription [新股認購] as their original amount is pretty small.
- Common stock
It is the most traded stock in the market. Common stock is the one that creates the difference of rights in the stockholders as the stocks contain designated values of votes and proxies. That means if a person has purchased one share, then he can appoint one poxy and can place one vote. These things do not make any difference till a person has a massive member of shares. But if a person has the majority of shares, he can influence the decision of the company.
Except this, they get the profit from the shares at last, but when all the stockholders get fixed amounts, then they will get all the remaining about in the ratio of their stocks.
- Preferred stocks
These are distinct from the above stock. Here the trader can get the amount before the common stockholder. But they will only get an amount that is certain by the company before. Preferred stocks do not provide stockholders any voting right as they are restricted to common stockholders. The amount of IPO subscription [新股認購] is similar for both the stocks.
So there were some distinct types of stocks a person would generally see in stock marketing.