Investment in stock

If you wish to invest in stock to earn money then I wish to give you some tips before investment. To earn more money you need to think about stock market. This is because stock market is the place where you can invest your money and earn maximum benefit out of it.

There are two kinds of stock you are familiar with one is common stock and other is proffered stock. Both of these have some pros and cons. Let’s discuss them

Common stock is that stock which is directly associated with profit and loss of the company. You can invest your money directly in that kind of stock. If today you go to home and sit before the company and buy 100 shares of Microsoft then you are buying common stock. It is the kind of stock which is given out to the employees of the company. The risk factor is higher in that kind of stock but the amount of profit is also higher. This kind of stock does not have any fixed rate of interest.

Preferred stock is the ownership of the firm which claims more dividends and more asset than the common stock. The rate of dividend is fixed in this and the dividend is paid before the payment of common stock dividend. This stock appears with more potential than the common stock but it does not provide the voting right as common stock.

Now I think you have got some idea about stock. So you can decide where you want to invest your money. But before investing in a particular stock you need to examine the market forces and the risk factor etc.