The Basics of Stock Markets

Your financial security is a part of your investments because you can hardly rely on a pension after you retire. Even your job is not guaranteed so learning about stocks for your future is a good idea. A stock is a piece of a corporation. You will be buying a piece of something and be part owner of it. When that corporation or company makes money, you will get your percentage and that earning is called a dividend.
Stocks have two types: preferred and common stock. Common stock owners have a board of directors that are elected and they vote on the policies of the company. The preferred stock owners claim higher assets and earnings than common but not voting rights are included.
Stocks are traded on an exchange like the American Stock Exchange or the NASDAQ. The primary market is for the first time stocks are sole to the public and the secondary is for trading between individual investors. A broker is one who can buy and sell stocks for you. A stockbroker is actually a salesperson.