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how to invest on share market
How to invest on share market Stocks are an equity investment that represents part ownership in a corporation and entitles you to part of that corporation’s earnings and assets. Common stock gives shareholders voting rights but no guarantee of dividend payments. Preferred stocks provides no voting rights but usually guarantees a dividend payment.
In the past, shareholders received a paper stock certificate -- called a security -- verifying the number of shares they owned. Now, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm.
Investing in stocks can be tricky business. In fact, it’s best to treat all of your investment pursuits as a business. Heck, that’s what Benjamin Graham (Warren Buffett’s stock market mentor) recommended.
Before you buy your first stock, you should master the basics of stock investing. This won’t make you a great investor overnight, but only when you understand the fundamentals of investing can you learn how to invest in stocks with confidence.
Understanding Execution:Trade ’execution’ is just a fancy way of referring to a transaction. When you buy or sell stock, you’re executing a market. To invest in lingo, usually refers to a particular type of investing strategy, so qualifying your use of the term ’trade’ with the word ’execute’ lets other investors know that you’re talking about a specific transaction.
5 Ways to Place Your Stock Order
There are five different types of stock orders that your broker will likely let you use. They are:
Market Order Limit Order Stop Order Stop-Limit Order Trailing Stop Order
Know What About After-Hours Trading
Happy Investing!
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