Markets - StockMarkets - Stocks - Basic - Types of Stock - Shareholder - Trading

http://www.1mtx.com/markets-trades/en/index.php?language=en&menu=MARKETS&punkt=Stock&punkt2=Stocks&index=Basic#StocksBasic Stock: In financial terminology, stock is the capital raised by a corporation, through the issuance and sale of shares. A shareholder is any person or organization which owns one or more shares of a corporation's stock. STOCKS: Basics In financial terminology, stock is the capital raised by a corporation, through the issuance and sale of shares. A shareholder is any person or organization which owns one or more shares of a corporation's stock. Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... Websites of Major Stock Exchanges in The World ... Latest Updates... NYSE Euronext Tokyo SE NASDAQ OMX London LSE Shanghai SSE HongKong HKEx Toronto TSX Boerse Frankfurt ...more at Stock Exchanges A - Z Latest Updates... ...In financial markets, a share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. In British English, use of the word shares in the plural to refer to stock is so common that it almost replaces the word stock itself. In American English, the plural stocks is widely used instead of shares, in other words to refer to the stock (or perhaps originally stock certificates) of even a single company. Traditionalist demands that the plural stocks be used only when referring to stock of more than one company are rarely heard nowadays. Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Types of stock Stock typically takes the form of shares of common stock (or voting shares or ordinary share). A voting share is a stock giving a stockholder the right to vote on matters of corporate policy and the composition of the members of the board of directors. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Shares of such stock are called "convertible preferred shares" (or "convertible preference shares" in the United Kingdom). Unlike common stock, preferred stock usually has several rights attached to it: The core right is that of preference in the payment of dividends and upon liquidation of the company. Before a dividend can be declared on the common shares, any dividend obligation to the preferred shares must be satisfied. » more (Rights) » more (Users: Canada, USA, U.K. ... Common Types) Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Shareholder A Shareholder (or stockholder) is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. Companies listed at the stock market are expected to strive to enhance shareholder value. Shareholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned) on matters such as elections to the board of directors, the right to share in distributions of the company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a liquidation of the company. However, shareholder's rights to a company's assets are subordinate to the rights of the company's creditors. Shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders. » more (Application - Shareholder rights) Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Trading A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, bonds and warrants and other financial products where investors (represented by stock brokers) may buy and sell shares of a wide range of companies. A company will usually list its shares by meeting and maintaining the listing requirements of a particular stock exchange. In the United States, through the inter-market quotation system, stocks listed on one exchange can also be bought or sold on several other exchanges, including relatively new so-called ECNs (Electronic Communication Networks like Archipelago or Instinet). In the USA stocks used to be broadly grouped into NYSE-listed and NASDAQ-listed stocks. Until a few years ago there was a law that NYSE listed stocks were not allowed to be listed on the NASDAQ or vice versa. Many large non-U.S companies choose to list on a U.S. exchange as well as an exchange in their home country in order to broaden their investor base. These companies have then to ship a certain amount of shares to a bank in the US (a certain percentage of their principal) and put it in the safe of the bank. Then the bank where they deposited the shares can issue a certain amount of so-called American Depositary Shares, short ADS (singular). If someone buys now a certain amount of ADSs the bank where the shares are deposited issues an American Depository Receipt (ADR) for the buyer of the ADSs. Likewise, many large U.S. companies list themselves at foreign exchanges to raise capital abroad. Arbitrage trading Although it makes sense for some companies to raise capital by offering stock on more than one exchange, a keen investor with access to information about such discrepancies could invest in expectation of their eventual convergence, known as an arbitrage trade. In today's era of electronic trading, these discrepancies, if they exist, are both shorter-lived and more quickly acted upon. As such, arbitrage opportunities disappear quickly due to the efficient nature of the market. Buying There are various methods of buying and financing stocks. The most common means is through a stock broker. Whether they are a full service or discount broker, they arrange the transfer of stock from a seller to a buyer. Most trades are actually done through brokers listed with a stock exchange, such as the New York Stock Exchange. » more Selling Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell high, if not in that order (short selling); although a number of reasons may induce an investor to sell at a loss, e.g., to avoid further loss. » more Stock price fluctuations The price of a stock fluctuates fundamentally due to the theory of supply and demand. Like all commodities in the market, the price of a stock is directly proportional to the demand. However, there are many factors on the basis of which the demand for a particular stock may increase or decrease. These factors are studied using methods of fundamental analysis and technical analysis to predict the changes in the stock price. A recent study shows that customer satisfaction, as measured by the American Customer Satisfaction Index (ACSI), is significantly correlated to the stock market value. Stock price is also changed based on the forecast for the company and whether their profits are expected to increase or decrease. » ACSI (American Customer Satisfaction Index) Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Stock derivatives A Stock derivative is any financial instrument which has a value that is dependent on the price of the underlying stock. Futures and options are the main types of derivatives on stocks. The underlying security may be a stock index or an individual firm's stock, e.g. single-stock futures. Stock futures are contracts where the buyer is long, i.e., takes on the obligation to buy on the contract maturity date, and the seller is short, i.e., takes on the obligation to sell. Stock index futures are generally not delivered in the usual manner, but by cash settlement. A stock option is a class of option. Specifically, a call option is the right (not obligation) to buy stock in the future at a fixed price and a put option is the right (not obligation) to sell stock in the future at a fixed price. Thus, the value of a stock option changes in reaction to the underlying stock of which it is a derivative. The most popular method of valuing stock options is the Black Scholes model. Apart from call options granted to employees, most stock options are transferable. » more (Equity derivatives) Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top History The first company that issued shares was the Dutch East India Company in the early 17th century (1602). The first company that issued shares was the Dutch East India Company in 1602. During Roman times, the empire contracted out many of its services to private groups called publicani. Shares in publicani were called "socii" (for large cooperatives) and "particulae" which were analogous to today's Over-The-Counter shares of small companies. Though the records available for this time are incomplete, Edward Chancellor states in his book Devil Take the Hindmost that there is some evidence that a speculation in these shares became increasingly widespread and that perhaps the first ever speculative bubble in "stocks" occurred. The first company to issue shares of stock after the Middle Ages was the Dutch East India Company in 1606. The innovation of joint ownership made a great deal of Europe's economic growth possible following the Middle Ages. The technique of pooling capital to finance the building of ships, for example, made the Netherlands a maritime superpower. Before adoption of the joint-stock corporation, an expensive venture such as the building of a merchant ship could be undertaken only by governments or by very wealthy individuals or families. Economic historians find the Dutch stock market of the 1600s particularly interesting: there is clear documentation of the use of stock futures, stock options, short selling, the use of credit to purchase shares, a speculative bubble that crashed in 1695, and a change in fashion that unfolded and reverted in time with the market (in this case it was headdresses instead of hemlines). Dr. Edward Stringham also noted that the uses of practices such as short selling continued to occur during this time despite the government passing laws against it. This is unusual because it shows individual parties fulfilling contracts that were not legally enforceable and where the parties involved could incur a loss. Stringham argues that this shows that contracts can be created and enforced without state sanction or, in this case, in spite of laws to the contrary. » The Oldest Share (oldest-share.com) » Tulip mania (Tulip mania is used metaphorically to refer to any large economic bubble. The term originally came from the period in the history of the Netherlands during which demand for tulip bulbs reached such a peak that enormous prices were charged for a single bulb. It took place in the first part of the 17th century, especially in 1636–37.) Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top » ...more Links ! » more Links History of stock exchanges ...In 11th century France the courtiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. As these men also traded in debts, they could be called the first brokers. ... » more (wikipedia) Golden Share A Golden Share is a nominal share which is able to outvote all other shares in certain specified circumstances, often held by a government organization, in a government company undergoing the process of privatization and transformation into a stock-company.... » more (Purpose - History - Legal Challenges) Stock trader A stock trader or a stock investor is an individual or firm who buys and sells stocks or bonds (and possibly other financial assets) in the financial markets.... » more (Stock trader versus stock investor) Stock selection criteria Stock selection criteria is a strategy in which an analyst or investor uses a systematic form of analysis to determine if a particular stock constitutes a good investment which should be added to their portfolio. The objective of stock selection criteria is maximizing total return on investment (appreciation plus any dividends received) for the target holding period, subject to limiting risk to acceptable levels, and maintaining a targeted degree of portfolio diversification. The position can be either long or short, depending on the analyst or investor's outlook for the particular stock's price. It is widely acknowledged that a disciplined stock selection approach was one of the primary factors behind the success of well-known investors like Warren Buffet and Peter Lynch. Several systematic stock picking approaches have been proposed and evaluated. Some of these approaches can be automated in the form of automated screens... » more (Stock picking: Selection Components - Sector- and Quantitative Cumulative Value Analysis) Stock Screening Morningstar Stock Screener... » Stock Screener (Morningstar.com) Stock Picking: Rules of Thumb Fund manager Peter Lynch in his two best-selling investment books entitled One up on Wall Street (1989) and Beating the Street (1993) has outlined several strategic rules of thumb or criteria that should be evaluated when considering a particular security investment... » more (Market Cap - PEG Ratio < 1.2 - Earnings Growth 15-30% - Debt Ratio < 35% - Institutional Ownership 5-65% - Dividend Yields - Cyclical Stocks) Stock Selection Effectiveness In A Random Walk Down Wall Street, Burton Malkiel (b. 1932), an economist from Princeton University, argues that asset prices typically exhibit signs of random walk and that one cannot consistently outperform market averages. ... » more (wikipedia) Market capitalization ...Market capitalization, often abbreviated to market cap, is a measurement of corporate size that refers to the current stock price times the number of outstanding shares. ... » Market cap (www.1mtx.com) STOCKS GLOSSARY A - Z Terms - Definitions - Exchanges Major Trade Exchanges Europe - Africa/M.E. - Asia/Pacific - Americas - USA Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ...| Reports | Analysis | Opinions | Comments |... | Reports | Analysis | Opinions | Comments | Stocks vs. Bonds - Are You Listening? Where are we in the relative strength between stocks and bonds? We will assume that the effect of coupon interest and stock dividends are built into the current prices. The following ratio chart gives us some indication in terms of stocks relative strength. We have chosen to relate the Nasdaq 100 to the 30 year Treasury Bond.... Read more » (by Greg Miller - Safehaven.com; November 13, 2005) BAA 'golden share' ruled illegal The UK government's "golden share" in airport operator BAA - owner of Heathrow and Gatwick - has been ruled illegal under EU law. ... Read more » (BBC Business; 13 May, 2003) A Random Walk Down Wall Street An Excerpt All investment returns — whether from common stocks or exceptional diamonds — are dependent, to varying degrees, on future events. That's what makes the fascination of investing: It's a gamble whose success depends on an ability to predict the future. ... Read more » (wwnorton.com) Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Bolsa de Madrid - Stock Exchange in Madrid, Spain Bolsa de Madrid Take a break... ...Take a Break...Just Relax... » Slideshow: StockExchange (flickr.com) Wallstrip - Vice Stocks ...just relax... New York Stock Exchange New York Stock Exchange ADVERTISEMENT Types of stock Shareholder Trading Stock derivatives History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Sources: Wikipedia; Safehaven.com; BBC Business .1MTX 2007/2008