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What Type Of Stock Should You Buy?
By qwcdirect | April 17, 2010
Before you can decide to buy stocks, you should first understand the types of stocks available. There are two types of stocks available and these are the common stocks and the preferred stocks. Each of the stocks above has its advantages and disadvantages and each is a representative of the different levels of ownership and investment of the said company. Common stock is the type of stock that most people are aware of and every time you buy stock that is labeled common you are buying shares of that company and you get a voter right for each share you buy.
If you wish to buy stocks but you want, a smaller but safer return for your investment, and then you require the preferred stocks. This means that you are guaranteed to payment for your fixed dividends and you get preference incase the company is dissolved. The company without any warning can purchase preferred stocks.
Topics: Investments, Stocks & Trading | No Comments »