No matter you are beginners in SGX stock market or an experienced one, the thing that matters is how much understanding you are having about the stocks behavior while investings. Here are the types of stocks uncovered to get some insights about the same:
Common stock is the stock, which generally the traders & investors owns & majority of stock is invested in this form.
Preferring common stock exhibits good stock signals as it tends to deliver higher returns by means of capital growth as compared to other investment returns.
Preferred stock exhibit the degree of ownership in a specific company and investors are assured of having fixed dividend for always, which behave as a stock trading signal.
Another benefit of preferred stock is that the preferred shareholders are paid off prior to common share holders.
The preferred stocks may be callable, that is the company can buy the shares from shareholders any time.
Classes of Stocks:
Besides these two types of stocks, the companies can customize the various classes of stock as these companies need voting power to stay with a certain group. That’s why, varying classes of shares are provided with different voting rights.
Stock trading is all about investing with complete understanding of stocks & how they are traded in order to get guaranteed return on investment. Investors must know the basics of stocks in order to trade with correct analysis.