Trading and Investing in Stocks and Brokers

Stocks

What is Stock

Stock is  a share in ownership of a company. It is also called an equity or share. The more stock you acquire for a company you will have more ownership in the company.

Different Types of Stocks

Common Stock: Common stock provides ownership in the company and will have voting power to choose the board members. in the event of company going bankrupt common share holders will be last in the queue, they get after the creditors,bondholders and preferred holders.

Preferred Stock: Preferred sock is also a ownership in the company but unlike common stock ,preferred stock holder will get a guaranteed fixed dividend over time and in the event company going a bankrupt preferred share holders comes before the conman share holders to get the asserts from a company.

How stocks Trade

Most stocks trade on exchanges, exchange is a place where buyers and sellers gather together and trade, the other type of exchange is virtual exchange where trades are done electronically over a network of computers.

Exchanges in United States

Most famous exchanges available in US are NYSE( New York stock exchange), Nasdaq. Nasdaq is the virtual exchange where trades are executed electronically. other famous exchanges include in United states are AMEX.

Trading Stocks in United States

To trade stock you need an account with a stock broker and currently large number of brokers available. we we will provide you list of best brokers with their commission rates..

Binary Options

 Binary options are the way that you make a  fixed amount of profit/loss by betting on an asset to remain above or below a particular strike price.

Assets: The assets of underlying option binaries include currencies(forex),indices,commodities , stocks.

Trading of Binary Options

 If you think the asset will remain above the strike price then you would buy binary call option and Binary put option if you think underlying asset will remain below the strike price at the expiry time.

Binary Option Brokers

To trade binary options you need an account with a broker and there are quite a large number of brokers available around the world. we are analyzing best brokers and will be publishing in my next blog.

Binary Option Resources

To understand better we recommend you to check the following resources.

CBOE: Chicago Board of Options Exchange is the largest options exchange in the world and creator of listed options.trading volume at CBOE is over one billion contracts per year