Free Articles, Free Web Content, Reprint Articles
Monday, November 12, 2018
 
Free Articles, Free Web Content, Reprint ArticlesRegisterAll CategoriesTop AuthorsSubmit Article (Article Submission)ContactSubscribe Free Articles, Free Web Content, Reprint Articles
 

Investing in Common Stocks for Beginners-Part 1

Successful investment in stock market requires an understanding of the different characteristics and features of the stocks.

It is important to learn some basic knowledge about what common stocks is, how many types of stocks have, what causes stock prices to change and many more.


Common stocks are the most common form of stocks an investor will encounter in the financial market. It represents a certificate of ownership of a company. Here we will look at the two important features of common stocks  limited liability and liquidation rights.


Limited Liability:

Common stockholders have limited liability, in other words, their liability is limited to those stocks. They cannot be forced to pay anything out of their own money in the event of bankruptcy. They are fully protected against any financial obligations incurred by the organizations.

Liquidation Rights:

If a company goes bankrupt and liquidates all its assets, the common stockholders have the right to receive their share of sale proceeds. However they are the last to receive money after the creditorsFree Articles, bondholders and preference stockholders are paid.

Please visit the relevant guide to learn more interesting stuff about stock market secrets and stock investment tips.




Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR


The author, Loke Yuen Wong, holds an MBA from Heriot-Watt University (UK) and a BCom degree from The University of Adelaide (Australia).



Health
Business
Finance
Travel
Technology
Home Repair
Computers
Marketing
Autos
Family
Entertainment
Law
Education
Communication
Other
Sports
ECommerce
Home Business
Self Help
Internet
Partners


Page loaded in 0.167 seconds