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INVESTING: Shares and Stocks checklist (printable)

Shares and Stocks are terms used in the financial markets, often confusing people as to what they actually represent or how they are used to generate profits.

• The terms shares and stocks can be used interchangeably and are the same thing
• Shares represent ownership of a company
• The percentage of ownership will depend on how many shares are held and what the total number of shares available is
• Purchase of shares is done through a stock broker
• The Market Price of a share is the current trading price
• The price of a share will change constantly depending on supply & demand
• Profit is made by purchasing shares at a price lower than they are sold for
• The buying and selling of shares will involve paying a commission to the broker
• Shares are purchased and sold in whole units, never fractional
• Shares can be either Common or Preferred
• Common Shares hold basic voting rights
• Preferred Shares typically are not allowed to vote, but hold dividend rights





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