Online stocks trading came into existence with the appearance of the Internet, which gave individuals interested in trading the opportunity of accessing any financial market just with a simple mouse click. Way back when traders or investors wanted to take up trading and place their trading orders, they did it through a broker, who could considerably affect traders’ decisions. However, due to the development of the Internet, today traders can trade any stocks online and make their trading decision on their own.
What is Stock? : Types of Stocks
As it is known, a stock is a piece or ownership of a company. When you purchase a stock, you buy a small piece of the company and become entitled to part of its profits. Companies issue their stocks to the public in order to gain revenue and traders or investors in their turn buy these stocks for generating profit and building wealth. Actually, there are three types of stocks: common, preferred and unlisted.
Common stock is the stock that traders or investors normally trade. A common stock or a share indicates the ownership in a company and it grants the shareholder with a proportion of the company’s dividends and voting rights. Usually, traders and investors get one vote per share to elect the board directors or vote on other corporate issues such as accepting the takeover bids, etc. Actually, common stocks are more risky and in case the company goes bankrupt and liquidates, common stockholders are the last ones to be paid, because the bondholders, creditors and preferred stockholders are supposed to be the first ones to receive money.
Preferred stocks indicate some degree of ownership, but unlike common stocks, preferred stocks do not grant investors or traders with voting rights. In case the company goes bankrupt or liquidates, the preferred stockholders will get paid before the common stockholders until the company runs out of the money. For some investors preferred stocks are more secure and beneficial.
Unlisted stocks are the ones which are not listed and traded on any stock exchange market and they can be either a common or a preferred stock. Actually, unlisted stocks are traded within a company.
The best online stocks provider
The popularity of trading stocks online has resulted in the emergence of various brokers providing online stocks trading and one of them is IFC Markets.
IFC Markets is a leading regulated Forex and CFD broker, who has been steadily working since 2006 and who has already found its deserved place in the boundless world of finance. Only with IFC Markets you will get a unique opportunity of accessing the world’s most popular stock exchange markets such as New York Stock Exchange, London Stock Exchange, NASDAQ, Australian Stock Exchange, Hong Kong Stock Exchange, Tokyo Stock Exchange and Xetra Deutsche Boerse.
Choose your online stocks trading provider and with a well-planned trading strategy enjoy the full benefits of stock trading.