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Stocks and Bonds

Stocks are an equity investment that represents part ownership in a corporation and entitles you to part of that corporation's earnings and assets. Today, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm.


TOP 3 MOST FOLLOWED INDICES(INDEX)


  • NASDAQ COMPOSITE - a stock market index of the common stocks and similar securities listed on the NASDAQ stock market.


  • DOW JONES INDUSTRIAL AVERAGE -  simply the Dow, is a stock market index that indicates the value of 30 large, publicly owned companies based in the United States, and how they have traded in the stock market during various periods. 


  • S&P 500 INDEX - or just the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market.



4 Types Of Stocks:

  • Growth stocks - these are the shares you buy for capital growth, rather than dividends.
  • Dividend(yield stocks) - a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
  • New Issues -  is a reference to a security that has been registered, issued, and is being sold on a market to the public for the first time(IPOs)
  • Defensive Stocks - is a stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market

Bonds:

In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds.


How Do They Work?

 Bonds are issued by governments and corporations when they want to raise money. By buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments usually twice a year.


Forex:

 The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices. 


Futures:

 In finance, a futures contract is a standardized forward contract, a legal agreement to buy or sell something at a predetermined price at a specified time in the future, between parties not known to each other. The asset transacted is usually a commodity or financial instrument.

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