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Testimonials

Great site Kenny.

Technical Analysis written in a straightforward way so that everyone understands.

There's only a small few who get it consistantly correct and you are certainly in that group. Chris


Thanks for putting this all together and sharing! BHW



Awesome Stuff! Kenny has shown time and time again the ability to show us direction in these markets. Khalsa



Kenny, I appreciate your insight and analysis. You make sense of what I can rarely see.

Thanks for sharing.
Gene
 



Took a gold short at 1240 just closed at 1203 :-)))))))))))))))))) ........ top call!!  Gekko

Stocks and Shares

The Stock Market Basics For Beginners

What are Stocks and Shares

Stocks and Shares are
pretty much terms for the same thing. Stocks are publicly traded companies that you can buy a part ownership or Shares of.

When a business needs to raise cash, rather than borrowing it, they may simply sell ownership in shares. They may choose to sell either a percentage or the whole of the company giving each of the new "Shareholders" a part ownership.

Trading Stocks and Shares  is the buying and selling of those securities.

Common Stock

Holders of Common Stock or Ordinary Shares, have a part ownership in the company and as such are entitled to a percentage of any profits it may make.

These shares usually have voting rights allocated to them so the more you own the larger the slice of the profits you will get and the bigger say you will have in the way the company is run.

In reality, small shareholders will have no real influence as the financial institutions that hold large blocks of shares will have a big enough holding to control any voting issues.

Ordinary-shares can also be divided further, into different classes such as Class A and Class B one of which will usually be traded as a fraction of the other and may not have the voting rights entitlement.

 Why buy Stocks and Shares


Preferred Stocks

Preferred Stock  does not mean it is the stock I like to hold in my stock market portfolio of stocks and shares.

Preferred Stocks and Shares are slightly different to common stocks and usually give the holders enhanced dividend rights and have a higher priority status in the event of the company going bankrupt. Common Stock holders are bottom of the heap when it comes to bankruptcy and are very unlikely to get anything back at all.

Preferred Stocks can have a number of different characteristics and benefits so each one needs to be researched individually.

These shares are traded in stock Exchanges such as the London Stock Exchange (LSE) or New York Stock Exchange (NYSE) etc in exactly the same way as common stocks although they will have different values reflecting the variation in associated benefits..

Why buy Stocks and Shares

Penny Stocks

What are Penny Stocks and Shares? This is actually a colloquial term for which many traders will have their own definitions.

Generally speaking, in the UK stock market, the Penny Stocks label is given to a Company whose share price is trading at 100p or less. In the US it usually considered to be stocks trading at less than $5 or so.

Trading Penny shares can be a higher risk strategy  because the spreads can be much wider than with other shares. They may be smaller companies or newer start ups and are at a far higher risk of failing so your investment may be less secure.

It is also possible that there might not be much demand for that particular stock and the lack of stock market liquidity may make it difficult for you to sell your holding at the price you want.

Learn more about Penny stocks trading at  Penny Stock Prophet .com

The advantages of trading Penny Socks and Shares are that their share prices can be very volatile and short term traders love a bit of volatility because they can get in and back out again in a short space of time. Also, because the companies are usually small unknown entities, any one of them could turn out to be the worlds next Google or Microsoft.    



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