STOCKS
What are stocks?
Stocks represent ownership in a company. By purchasing a stock, you acquire a share—literally a fraction of that business. Companies issue stocks to raise capital, while investors trade them to pursue profits.
Types of stocks
Common stocks –
Grant voting rights to shareholders and may provide dividends.
Preferred stocks –
Offer fixed dividends, but generally do not include voting rights.
Why invest in stocks?
Capital growth:
Historically, stocks have delivered higher long-term returns compared to many other asset classes.
Dividend income:
Certain companies distribute dividends, creating a source of passive income.
Liquidity:
Stocks can be quickly bought or sold, providing investors with flexibility.
Stock market basics
Stock exchanges:
The largest and most recognized are the New York Stock Exchange (NYSE) and Nasdaq.
Market Indexes:
Key benchmarks include the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite.
How to analyze stocks?
Fundamental analysis –
Focuses on a company’s financial health, evaluating metrics such as profits, revenue, and debt.
Technical analysis –
Relies on price charts and indicators to anticipate market movements.
We provide in-depth stock
analysis to help traders make informed decisions.
Risks of stock trading
Market volatility:
Prices can change rapidly, creating both opportunities and risks.
Company performance:
Weak earnings or mismanagement can negatively impact stock value.
Economic factors:
Elements such as interest rates, inflation, and global events play a significant role in pricing
Conclusion
Trading stocks can be highly rewarding, but success requires knowledge, strategy, and risk management. Whether you are just beginning or already an experienced trader, staying informed and understanding market dynamics is essential to making sound investment choices.