Stocks


Equity or stock investing is a means of buying small ownership stakes, typically in publicly-listed companies, on one of the major exchanges. Public stocks are available for investment by nearly any individual or instititional investor. Equities can be a source of wealth over time, but, like any investment, also carry inherent risk.

More About Stocks

Continue reading to learn more about:

Equities investment
Definition 
Types of stocks
Pros & Cons of Major stock markets


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Equities investment


Stocks, who can resist? Buying stock in a company is a form of investment that could make you loads of money if you choose the right company. But what's the best stock to invest in now? Perhaps Google or Apple would fit your bill, but then again maybe you should go with IBM or facebook? Whatever the case, we have all of the information you'll need to help you choose and successfully invest in stocks online.


 
 

Definition 


Stock is an investment in a company, usually purchased through a stock exchange. For example, when the Google stock goes up and you purchase more of that stock, then your shares increase in value. There are many types of stocks such as bonds and futures that you can invest in if you have enough money.

 

Types of stocks

Stocks are pieces of a company that you can sell and buy on the stock market. They can be sold at any time and bought at any time. There are three major stock exchanges in the United States: the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), and the National Association of Securities Dealers Automated Quotations (NASDAQ) system.

New York Stock Exchange (NYSE)

- New York Stock Exchange (NYSE) is one of the largest stock exchanges in the world that regulates lives of millions of people. It's headquarters is situated in New York City on Wall Street. It provides information about companies and prices for securities issued by companies; moreover, it performs trade settlements and securities clearing services.


American Stock Exchange (AMEX)

- American Stock Exchange (AMEX) is one of the U.S. stock markets. It is the fourth securities market in history to offer common equity shares for trading, including the National Market System which is a network of smaller exchanges trading at different times in the day. In comparison to NYSE and NASDAQ, AMEX only trades certain stocks.

National Association of Securities Dealers Automated Quotations (NASDAQ) system

- As the leading provider of financial market data products, NASDAQ offers a broad suite of services. An industry leader in electronic trading, auction markets and the development of new products, NASDAQ has established a product line that includes stock indexes, corporate bonds, Treasury securities, mutual funds and futures.


 
  • Pros

    Stocks are a way of owning the stock. That means that you own a piece of whatever business you buy the stock in. When you own stock, you share in the profits, and you share in the value of the company. This gives investors a chance to build their wealth over time.
  • Cons

    The one drawback is that if something happens, such as bankruptcy or a management change, your stock may not be worth anything at all.