The Break Down of Stocks & Bonds

The Breakdown of Stocks & Bonds

When it comes to investments it can be a bit confusing at first, but it isn’t until you really get to know what investments are, how many different kinds there are, and how they work to feel somewhat comfortable with them. Investments are something that you purchase to make use or make a profit from in the future. There are many investments arranging from live stock, real estate, trust funds, mutual funds, annuities and the most common type of investments stocks and bonds. Like every investment it’s a gamble, you win some and you may lose some. But the overall purpose is to win. Stocks and bonds may be similar in some ways but different in many. Let’s take a look at the breakdown of stock and bonds.

What are stocks? Stocks are a share in ownership in a company which were represented certificates but are now mainly represented by an electronic serial number which is easy for trading. Owning stock in a company may give you ownership, but it does not give you the authority to make decisions for the company, such as have input on the day to day operations but it gives you the opportunity to vote for the board of directors for the company dependent upon the amount of stock you own. At this point I know you’re interested in going out and buying stock but lets take a deeper look in them before you do. Why would companies want to sell stock or ownership? Its easy, companies sell stock they same reason why you buy stock and that’s to make money. The more stock that a company sells the bigger the chances are of making a capital gain. Dependent upon the size of the company the stock may be sold to only employees or may be publicly traded. Among some of the top publicly traded companies you will find many familiar names such as Apple, Microsoft, Good Year, and Intel just to name a few. How much do stocks cost? Stocks may range from different prices. Some may start at 0.01 and go all the way up to 200.00 Buying stock is not solely dependent upon the cost. You would be sure that you purchase stock that will do well in any market. Invest in something that will be able to stand against the ever changing economy. Where do you buy stock from? Buying stock and making sure you purchase the right stock is almost as important as making sure you have life insurance. If you are new to investments it is best that you purchase stock through a stock broker. A stock broker is someone who buys and sells stocks and or other investments either online or through agencies or firms. But when dealing with a stock broker be careful of the commission charges. Because they are doing the leg work for you, and they have the knowledge that you want and need to be successful they collect commission off of your trades. They know how to monitor the stock and play well with the game rules of buying low and selling high. If you are a pro at buying stock you may want to buy or sell in an online