My first exposure to Stock Market

By Leow Chen Xin

I did some research about the share market. Here is what I have learnt:

Stock market

Stock markets are platforms for the company and a common kind of investment. Stock market can also represent the part of the business capital of the stockholder. Also, the stock market can be divided into two types, one is capital common stock and the other one is preference shares.

Capital common stock :

Capital common stock is the company's risk stock. The holders are shareholders of the company and have the right to share in the company's profits. The obligation of ownership is bestowed by the company.

Because of this, the failure of the company may result in financial losses for investors. Ordinary shares are roughly the company's main capital, and there are no privileges to other shares.

Preference shares :

Preference shares have the priority to get the right to distribute (usually fixed) dividends before common shares. It has priority in obtaining property distribution when the company is wound up. Preference shares generally have no voting rights, but exceptions are made if the company fails to pay dividends for a period of time.

Chen Xin is eleven.