A live stock is a paper security issued by a stock company, in other words, an issuing company. All the investors who bought the shares became co-owners of the company. The action just confirms that its owner has a stake in the company, even if it is very small.
What are the types of live stocks/shares?
Shares can be subdivided into ordinary and preferred. The differences are related to two main rights — to vote and receive dividends.
- Ordinary. The most common type of shares. They always give the right to vote at the shareholders’ meeting, but they do not guarantee dividends.
- Preferred. They have a predetermined amount of dividends — for example, a rate of the company’s profit. Their owners can participate in the voting only if they have not received dividends based on the results of the previous year.
Sometimes there are preferred shares of special types:
- Preferred non-voting. They have a fixed dividend and the right to receive payments in the first place, but they do not allow voting.
- Preferred with special rights. The terms for the payment of the dividend and the possibility of voting are written down in the company’s articles of association. For example, the owners of such shares may have the opportunity to vote, receive priority in the payment of dividends and the right to be the first to buy new issues of shares. The charter may also contain any other rights that the company wants to grant to their owners.
Where to get funds to purchase of live stocks?
If you have no free funds to purchase live stocks, you may address any credit union to issue a loan. There are many different financial assistance such as a bank loan, a 1000 dollar loan, an installment loan, and etc. In any case, if you decide firmy to invest in shares, you should use any option to realize this idea.
We may explain to you some points why it is preferrable to issue a 1000 dollar loan. This is a short-term lending option issued for uo to a month or two to cover temporary expenses including the purchase of live stocks. We may specify several advantages of this type of the loan:
- quick decision -making on the application;
- deposit of funds immediately after approval;
- the ability to issue a loan from anywhere;
- transparent and understandable terms;
- you can get a loan even with a bad credit history;
- the opportunity to correct a bad credit history;
- no need for a package of documents;
- a simple questionnaire to fill out.
Where to buy American stocks/shares?
Before choosing a broker that provides access to American stocks, you need to consider several nuances:
- Availability of a license, which can be checked online.
- The broker operates on behalf of the client and provides the latter with access to a segregated trading account, where all transactions, securities issued in the name of the investor, etc. are visible. That is, its activities are transparent.
- The broker is not registered in an offshore zone, but in the United States where it operates.
- All transactions carried out by the broker are regulated by the SEC (State Securities Commission), and information about this is available. The broker is a member of SIPC (the insurance company discussed above).
- The broker’s activities are regulated by the Financial Industry Regulatory Authority (FINRA), an organization that monitors compliance with trading rules.
The ideal option is an intermediary who is registered in America, but conducts its activities in accordance with our legislation. And compliance with all of the above requirements means the safest cooperation and protection of the investor’s interests.
Advantages of American shares
The American economy is going through a difficult period, in 2020 the yield rate decreased by a record 3.5%. This is the biggest drop since the Second World War (1946). Despite this, the US stock market is one of the strongest on the world stage. A stable currency and companies such as Apple, Google and Walt Disney (stable growth for more than 20 years) give every reason to make long-term favorable forecasts. For 2021, American stock markets have a favorable forecast regarding the growth of shares of most giant companies.
The advantages of buying American stocks depend on several factors:
- Big risk – big dividends – is a law that forces novice investors to make mistakes. If you invest money in stable stocks, the income will be lower, but the chance of losing the investment is also significantly reduced. For operations on futures markets or when buying venture shares, this may not play a significant role. But if the goal is to invest and receive a steady income, this is important. The American ETF is a great stability and security of investments.
- Developed infrastructure and a huge selection. US companies – hundreds of dozens, probably even thousands, plus the opportunity to buy shares in any field without much difficulty. For example, companies engaged in the agricultural sector can be counted on the fingers. There is no such problem in America. Plus, the tools and market analytics that are freely available for American stocks are an order of magnitude higher in comparison with other countries.
- A convenient time for trading. On the New York Stock Exchange (NYSE), which is the largest in the world by capitalization. The NASDAQ electronic exchange for buying shares of companies from the high-tech sector (the same Apple, PayPal Holdings, etc.) is operating at the same time. This allows you to invest in the evening, and gives you more opportunities to conduct your own analytics.
- Transactions and dividends are in dollar currency.
- Insurance of securities and cash. SIPC is an insurance company for US investors that insures stocks and cash up to $250,000.
- Consideration of the interests of minority shareholders. This means that American companies adhere to a policy of equality and benefits for each shareholder.