Stock Market Tips Before Engaging In Stock Broking

Abid Ali
3 min readJan 24, 2020

The stock market is one good way to earn money especially in the time of global financial crisis. Investing in the stock market is commonly done by stock brokers since they are the individuals who are good in the buying and selling of stocks or shares in a stock market. The stock market on the other hand is the place where financial stock brokers can purchase shares from stock corporations.

A stock corporation is a financial institution where stocks or corporate shares are being issued or sold. The person who purchases shares will have the opportunity to earn dividends when the company acquires profit and sales. A non-stock corporation however does not distribute shares since they are non-profit institutions but earns profit for charitable purposes instead. A stock broker purchases shares from a corporation and it is up to them if they would want to sell the stocks to another stock broker or just wait for the company to earn profit in order to acquire dividends from the stock.

Some people have a wrong concept about investing in the stock market that they think that earning money is hard in this kind of activity. Investing in the stock market doesn’t require a large amount of capital since even an ordinary professional can purchase stocks or share from a company. There are two kinds of stock and these are the common stock and the preferred stock. Both of these stocks earn dividends when a company earns profit. A common stock however have qualities that a preferred stock do not have and one of these qualities are giving its possessor the right to vote during certain corporate meetings. One of the best advantages of a common stock is that a common stock holder is given major prioritization in terms of distributing dividend. A preferred stock on the other hand gives its owners the right to vote during corporate meetings regarding concerns about the shares of a company and in voting of a board of director.

Investing in the stock market is one good way to earn a lot of money especially during times of economic boost in a country’s economy. A stock broker is the individual that buys and sells stocks in the stock market. Before buying stocks, decision making is very essential before purchasing shares from a company since investing in stocks is very risky because this kind of activity is very unpredictable. The performance of a company in the economy plays a major role affecting the value of the corporate share.

The economic status of a country on the other hand is also responsible in the liquidity of the assets of a company and part of a company asset is its stocks and shares. Before buying a share from a stock company, a stock broker must first evaluate the current performance of the company in the stock market. The risks are very high and there is no space for a bad decision in investing in the stock market.

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