The Basics of the Stock Market

The stock market is a platform where companies raise capital by issuing shares to the public, and investors buy and sell those shares in hopes of earning a profit.

• There are two main types of stocks: common stock and preferred stock.
• Common stock represents ownership in a company and gives shareholders voting rights.
• Preferred stock typically has a higher claim on assets and dividends than common stock, but does not come with voting rights.

Types of Mutual Funds

Mutual funds are investment vehicles that pool money from multiple investors to invest in a variety of assets, such as stocks, bonds, and real estate.

• There are several types of mutual funds, including:
• Dividend-paying mutual funds, which pay dividends to shareholders on a regular basis.
• Growth mutual funds, which aim to invest in companies with high growth potential.
• Income mutual funds, which focus on generating income through investments such as bonds and other fixed-income securities.