Different Types of Stocks (Business Info)

(CREDITS):

--written by thewirter197
--employed by Ashford University



   Callable stock is when a company sells a stock to investors that can be re-bought after a specific time period. In other words, a stock a company sells that can be re-bought after a specific date. Company issues this stock when the company can not vote for the company's own issues. This type of stock is for a company that doesn't really trust another company who invested into their stock. There are also other types of stock such as common stock and preferred stock. Common stock is is the standard for most investors. It has the highest cash payout when the market does good in 5 years. Common stock allows investors to get one vote on board members who oversee the management team. The bad side to common stock is bad business. Bad business will mean that your future profits will be zero. The company you invest in most have good business long term or your company will lose money as well. You need to make sure that you invest in a common stock with a company that is going to be around for a long time. Preferred stocks offers investors a guaranteed dividend. This means that if you invest with a company with preferred stock, you will receive a guaranteed cash return. But, you must read the terms of the contract. You might have to wait to exactly 5-10 years for you to actually receive a payment. Preferred stock also offers guaranteed payment return of stocks in the event of a company's downfall. No matter what happens to the company, you will receive your cut in due time. Make sure you read the details for the contract before agreeing to invest in a company's preferred stock. Based on this basic information on different types of stock, I would invest in preferred stock. Preferred stock offers guaranteed payment on a specific date. All you need to do, is wait for the specific date and collect your guaranteed check. No business loss you need to worry about. You just wait and collect. It is the simplest way to do business. When it comes to investing in general, the market changes and sometimes you got to be steps ahead of everyone else. Steps way ahead of everybody else.


Reference:

https://www.investopedia.com/university/stocks/stocks2.asp