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Thursday, September 15, 2016

Stocks

Introduction
Stocks are parts of ownership of a corporation.  There are 3 ways to get paid from stock: capital gains, dividends, and options.  There are 2 kinds of stock, which is common and preferred stock.  A bundle of stocks and/or other securities are known as Exchange Traded Fund (ETF).  Stocks are sold on exchanges. An exchange is a place where securities are sold.
Stock Payment
Capital Gain: Sell the stock you own.
Dividend: It is a payment a shareholder receives from the corporation he/she has a share in.
Option: Betting on a stock to rise or fall.  If you get it right you will receive a great windfall.

2 Kinds of Stock
Common Stock: The purchaser of this stock has voting rights.  They have the right to vote on corporate policy, how securities are handled, who's on the broad of directors, etc.
Preferred Stock: The purchaser of this stock receives a higher dividend payment than someone with common stock.  They also get paid b4 the common stock purchasers.  They have no voting rights.
ETF
ETFs have shares in Unit Investment Trusts.  UITs have various securities.  They are like a mutual fund. ETFs don't try to outperform the stock market, mutual funds do.  There are different kinds of ETFs.  SPDRs has securities in the S&P 500.  iShare was created and managed by Barclays Global Investor.  It has securities in fixed income, commodities, and international sectors.  VIPERs has a lot of mutual funds. PowerShares is the youngest kind ETFs.  It has securities in fixed income, currency, and commodities sectors.  It looks for the best stock in each sector.  
Exchanges
Various securities are sold at different exchanges.  Some of the securities are stock, bonds, REITs, and futures.  The NASDAQ is the second most famous stock exchange in the US.  There are many exchanges around the world.  Tehran stock exchange is one of the best in the world!
Conclusion
Stocks (partial ownership of a corporation) and other securities are sold on exchanges.  Common stock has voting power and preferred stock has greater dividends.  ETFs are like mutual funds, but they have greater diversity and other benefits.  Capital gains, dividends, and options are 3 ways you can make $ with stocks. Now it's time 4 you to get rich!  
References
http://www.sijoitus.org/world_stock_exchanges.php
http://www.investopedia.com/
Stocks 
ETF
Common vs Preferred
Options
Dividends

 

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