A share is a part of a company that a person can own by paying for it; many companies open forty nine percent of their shares for any buyer worldwide. People can purchase a share of any company, and the share charge starts from very minimum amounts. Buying New stocks (新股 暗盤) gives you part in the financial asset, but none shareholder individually can control the whole company. But being together, shareholders can influence the company and can also participate in important decisions. The stock market has become very trending nowadays, as people have started studying the market.
The benefits of the stock market are tremendous, and an investor can earn a huge amount of money through the share. They have to remember to buy the share of a reputed company that has chances of paying greater outputs. There are many aspects of the stock market that users must know before entering it.
Varieties Of Share That A Person Can Buy
- Ordinary Share
An ordinary share is a share in which the shareholder is given the price for its share increases. Also, they are offered dividends by the company during the financial year. Apart from this there are also given the facility of voting at any e meeting of the company. Any meeting related to the business changes or other official meetings is open for all the shareholders.
- Preference Shares
These are the shares that are given right above the ordinary shareholders. In any company’s meeting, dividend, or any circumstance on the company, these shares have the company’s responsibility. The preference shareholder has a fixed income, and apart from that, they are offered dividends also. To get their shares person has to accomplish some of the requirements of the company.
Some Key Points To Remember Before Investing In Shares
- Before hiring a brokerage service, make sure that they are reliable and offering real services.
- No matter what, your broker asks or the companies, in which you have your share, never sign a blank document or a blank cheque.
- Always have a copy of your account opening form, the payments you have made through the brokerage house, and the payment you have received through the broker.
- Confirm the daily trade through your broker and consider having a recording or copy of this to avoid any disputes later.
- Don’t make any payment through cash or on any personal number of the broker. Consider paying through cross cheque only, e in the name of the broker.
- When you get your trade confirmation slip, check the details of the securities, the date on which your order is completed, the price at which the share is purchased, and the commission of your broker.
These are some of the basic tips that a share investor must remember if they hire a broker. Because most of the time, they forget to have written proof of their payment or any other important document that leads to any future problem. The broker will not always take care of your payments and profits, so you must consider the above tips to avoid losing your share investment.