Sunday, December 11, 2016

Shares

Shares are units of ownership in investing. You buy shares or a company or financial asset. Shares are different from stocks. The difference is that shares refer to a specific company. While on the other hand stocks are refer all shares you own. There are two types of shares, common shares and preferred shares. Most companies issue common shares, which are riskier than preferred shares. Common shares give shareholder make control over the business. Preferred shares may be less riskier but don't have the same benefits as common shares. If the company goes bankrupt and pays its lenders, preferred shareholders will receive payments before common shareholders. I know investing is confusing but it is worth it in the end!

1 comment:

  1. Thank you for posting this. This helped me better understand what shares are and the difference between them and stocks.

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