The Benefits Of The Stock Market

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“When you’re young, saving for something that’s years away—aka retirement—may not seem important. But it is exactly when you should start saving. The more time your money is invested, the more time it has to grow.” (Fidelity) Stocks are a great and somewhat easy way to have the money that is invested in them exponentially grow overtime. It’s a great way to start saving for future plans like a family and retirement, and can become more and more beneficial throughout the years! Even investing small amounts of money into the market can lead to larger profit in the future. What are stocks? What even is the stock market? Questions like these are asked by people all the time, but what’s the best way to learn about stocks? Throughout the internet, there are hundreds of sites to learn and teach about how and why stocks are used. These superb websites give great information about all that the stock market has to…show more content…
Common stocks are the stocks that are, well, common. When people usually discuss stocks, these are the ones they’re referring to. Over the long term, common stock, by means of capital growth, yields higher returns than almost every other investment. Preferred stocks are a little different. Preferred stock represents certain degree of ownership within a company, but usually doesn 't come with the same voting rights. (This may vary depending on the company.) Even though Preferred stocks have advantages like how preferred shareholders get paid off in the event of liquidation, these preferred stocks are also callable, which means the company that provides these stocks have the option to purchase back the stocks from the shareholders at any time for any reason. Even though these are the two main types of stocks, it 's also possible for companies to customize different types of stocks in any way they want. These stocks can be classified as either Stock A or Stock