By Leow Chen Zee
Stock market is a place where deals, buying, selling and shares of public companies are done. Multiple stocks can be allowed in a country or a region.
Stock market can help you to make lots of money overnight but can also cause bankruptcy if the stock market that you currently invest in is trending down.
The difference between stock and shares are clear. Stocks are the holder’s part-ownerships in one or several companies while shares is a single unit of ownership in a company.
For example, if you invest in stocks, that means you will hold a part of ownership of that company but if it’s shares, you will only hold a single unit of ownership of that company.
There are two types of stocks, which are preferred and common. Preferred stocks are more favored by the public because it is less risky than common stocks.
They pay you a higher dividend than the same company’s common shares but rate of return is less compared to common stocks but has no voting rights such as election towards the appointment of the high positions in the company.
Common stocks have advantages such as having voting rights towards the position of the company, enjoying a higher dividend than the preferred stocks. The disadvantages of common stocks, however, are that the dividend is less guaranteed and they carry risks of loss if a company fails.
Stock and share markets in Malaysia are located at BURSA MALAYSIA. Previously known as Kuala Lumpur Stock Exchange, Bursa Malaysia provides a full integration of transactions, offering a wide range of currency exchange and services such as trading , buying , selling, clearing stocks and savings service.
You should always think twice before investing in stock markets. Once you know how to invest in it, you could raise your net worth by using the stock market as a tool for investment. The affluent and rich people also use this investment tool to earn lots of money.
Chen Zee is 14
Commenti