Stocks represent ownership in a company, allowing investors to earn returns through dividends and capital gains. Here’s a quick guide to understanding stock fundamentals:
Key Concepts 📚
- Equity Shares: Ownership units in a corporation
- Market Capitalization: Total value of a company's outstanding shares (e.g., Large-cap, Mid-cap, Small-cap)
- Dividends: Regular payouts to shareholders from company profits
- Stock Exchanges: Platforms where stocks are traded (e.g., NYSE, NASDAQ)
Types of Stocks 📊
- Common Stock: Voting rights + variable dividends
- Preferred Stock: Fixed dividends + priority in liquidation
- Blue-Chip Stocks: Stable, well-established companies (e.g., Apple, Microsoft)
- Growth Stocks: High potential but volatile (e.g., tech startups)
Investment Risks ⚠️
- Market volatility 📉
- Company-specific risks 🏢
- Economic downturns 🌡️
- Regulatory changes 📜
For deeper insights, explore our stock analysis guide 📚.
Always research thoroughly before investing! 📈