Class A shares

Class A Shares are a form of common stock that may have more or less voting rights that Class B shares. Generally Class A shares have more voting rights, but companies sometimes trick investors by using the perception of “Class A” shares to attach fewer voting rights to them than Class B shares.

Class B shares

Class B Shares are a form of common stock that may have more or less voting rights that Class A shares. Generally Class B shares have lesser voting rights, but be vary of some companies that trick investors by using the perception of Class “B” (compared to “A”) shares to attach more voting rights to them than Class A shares.

Dividend

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends. Many corporations retain a portion of their earnings and pay the remainder as a dividend.

Stocks

What is a Stock? Stock is defined as a share of ownership in a company. If you own a company’s stock, you own a percentage of the company itself. This includes partial ownership of its assets (like equipment, vehicles, and buildings) and partial ownership if its income and profits. The main reason people purchase stock is because they believe in a company and its current … Continue reading Stocks »

What Are Stocks?

Stocks are shares in ownership of a company. Stocks represents a claim on the company’s assets and earnings. As you increase your holdings of a stock, your ownership stake in the company increases. Whether you say shares, equity, or stock, it all means the same thing.

When to Sell Stocks

Business chart with glowing arrows and world map

The question of when to sell stocks is not easily answered. On the one hand, you know a correction is coming but the question of “when” isn’t so clear. Anyone who has ever sold early only to stand by and watch others reap in huge profits have felt the pain of premature sales.