What is a Stock Market?
A stock market is a platform where companies raise capital by issuing stocks to the public. These shares represent ownership in the company and give investors the right to vote on important decisions.
Types of Stocks
- Cash Stocks: These are traded for their face value, without any dividend payments.
- Debt Stocks: These represent company debt and can be purchased by lenders to generate interest income.
- Preferred Stocks: With a higher claim on assets than common stocks, preferred stocks offer relatively stable dividends.
Stock Market Trading Strategies
Some popular trading strategies include the Bull and Bear markets, Trend Following, and Range Trading. These approaches involve analyzing market trends and making informed decisions to buy or sell stocks.
