Two Types of Stocks – Which Are Right for You?

When it comes to investments, nothing beats stocks. Whether you’re an individual investor looking for a good way to diversify your portfolio, or an institutional investor who wants to add stocks to his portfolio for growth or security, stocks make an excellent option. Stocks can be found in many types and offered in a wide range of markets. This means you can easily find the stock that is right for you at the right time and at the right cost.


A stock is simply a kind of ownership in a corporation. Investors purchase shares of ownership in a corporation so that they believe that the corporation will go up over time in value. All or most of the companies featured here are registered with the U.S. Securities and Exchange Commission. A shareholder will own a portion of a corporation’s outstanding shares, which represents a percentage of ownership in the business.

Because there is a minimum requirement for shares to be sold (usually 15% of ownership), there are also minimum requirements for stocks. Before you buy shares in a corporation, it’s important that you understand what these requirements are. Some types of corporations require an initial purchase of 100 shares as an investment, others require a minimum purchase amount. There are even some types of corporations that limit the number of shares that an individual shareholder can own. This can be helpful if you are new to the business world, but it may make it more difficult to achieve your overall investment goals.

Two main kinds of stocks are known as primary or common stock and preferred or common stock. The primary type is normally held by the company itself; it is listed on the stock exchange and has limited trading rights. A company’s primary stock usually does not issue dividends, although they are sometimes issued in order to increase the company’s cash flow. If the company is profitable, however, the dividends the corporation receives usually allow it to pay them. This allows investors to make money on their investment.

Preferred stocks are stocks that are owned by the shareholder (who is also the entity owning the building where the business is located). These stocks are listed on stock exchanges and can have larger trading values than primary stocks. They are usually issued with warrants, which give the owner the right to sell a specified percentage of the company’s shares for a specific period of time. This allows the shareholder to receive large dividends. However, these types of investments typically pay much less than primary stocks.

These are just two main types of stocks. There are many more. Anyone who is serious about investing should consider learning more about them. You can learn about many stocks online and through publications aimed at individual investors. If you are looking for a good place to start investing, there is no shortage of information about the stock market today. Whether you are interested in buying individual stocks, mutual funds, or other forms of investments, there is plenty of information about what you should know before investing.