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Investing in stocks and mutual funds are a great way to multiply and grow your wealth

What you will learn

Explain What is a Stock

Explain the Types of Stocks

Explain the Classification of Common Stock

Describe the Role of Beta in Your Portfolio

Description

Any business needs money or capital whenever it has to start its operations or expand its business operations. Thus, in order to raise this capital for a business start-up or expansion, the corporation would offer shares of stock for sale to the public.  By selling these shares or stock to the public, the company is able to increase its finance reserves and also get the necessary funds to start operations or expand its operations. So, any individual who purchases a ‘share’ or ‘stock’ of a company becomes a part owner of a portion of that company, based upon the number of shares purchased compared with the number of shares that make up the company’s total stock offering.

The trading of stocks at both national and international level is carried out on several exchanges known as ‘Stock Exchanges’. The determination of which stock exchange the stocks of a company would be traded on depends on the size of the corporation and the location of the company’s headquarters. The stocks listed on these stock exchanges are traded by licensed brokers who work for stock brokerages. ‘Stock brokerage’ pays a fee to the exchange to maintain a seat there for the privilege of buying and selling securities. It has been found over several decades that, as an asset class, common stocks have outperformed all other major asset classes. Also, stocks deliver strong long-term capital gains. They prove to be one of the best and most tax-efficient types of return.


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You should include stocks in your diversified portfolio because the individual stocks in a diversified portfolio can reduce the overall risk of your portfolio. Dividends and capital gains are taxed at a lower preferential federal tax rate and so if tax planning is done wisely, then stocks can prove to be tax-efficient assets. Common Stock is a ‘voting stock’. Hence, any individual who has purchased the common stock of a company is entitled to vote for appointing the officers of the company and it’s Board of Directors. Thus, common stock is the ownership share in publicly held company. Common stock holders have a residual claim on a company’s assets. Each common stockholder or shareholder of a corporation is entitled to certain rights and obligations. Thus, each common stockholder has the right to vote. Moreover, if a common stockholder is not able to vote in person, he can give a written consent to give permission to someone else to vote on his behalf as a proxy.

English
language

Content

Course content

Introduction-to-Stocks-and-Investing-Introduction
Explain What is a Stock
Explain the Types of Stocks
Explain the Classification of Common Stock
Describe the Role of Beta in Your Portfolio
List the Various Stock Screening Criteria
Explain the Types of Analysis in Stock Trading
Explain the Ratios for Valuing Firms
List the Criteria for Choosing a Broker
Explain the Common Stock Investing Strategies
Explain the Steps of a Typical Stock Transaction
Explain How to Read Stock Quotations
Explain the Calculation of Price-to-Earnings Ratio (PE)
Explain the Key Terms of Stocks and Investments
Describe the Rights of a Stockholder
Describe the Various Investment Options