Move aside beef, vegetable and chicken, financial stock is where the money’s at. Financial stocks (also known as shares, equity or equities) are small pieces of a company that are sold to the general public to raise capital for their business.
Owning stock is a great thing. When you own stock, it gives you the right to vote in shareholder meetings, receive dividends (which are the company’s profits), and sell your stock to other people. Stock can be traded by investors (you!) on markets like the New York Stock Exchange or the Nasdaq. Investors can buy shares directly from a company – this is the ‘primary market’. Or they can buy shares from other shareholders on the ‘secondary market’.
Tips and tricks
Have you thought about buying shares on your phone? That’s right! Thanks to today’s whizbang tech, investing is more accessible than ever before.