Online stock trading for beginners

By: Yury Steppin
Unfortunately many people are still confused with the idea of share and lottery ticket or casino gamble. Share is a serious investment document, with the help of which people all around the world SAVE and INCREASE their capital.

At the time wide range of people in some countries still have scanty knowledge of those opportunities which are hidden in shares, and as a result they can’t get all the welfares, which can be caused by this kind of securities. Meanwhile, elementary investment activities with shares return interest from 20% up to 80% annually in currency. Not to mention the more technologically difficult activities, where the profits are measured with hundreds percents annually. Nowadays, along with the Internet technology development all these opportunities are available for you. Don’t waste you time – examine more attentively Russian shares. Who knows, may be they TODAY will bring you welfare TOMORROW.

General information

Stock - is a negotiable paper, that establishes the right of certain share possession in a joint-stock company. Simply speaking, an investor becomes a co-owner of the joint-stock company and acquires a right to assist it's profit automatically.

There are documentary and paperless stocks. At the stock exchanges paperless-based trade is being conducted. Ownership of that stocks is taken into account by special registering organizations. These organizations are keeping all owner's datum at a special Depot accounts . When purchase or selling bargains are made, registering organization remittances stocks from the seller account to the Depot one. Official table statement is a documentary shareownership confirmation of purchased stocks. In addition, Depositaries are also storing negotiable papers. Depositaries set up an account of a Nominal owner in tables and take stock of client's negotiable papers inside.

Shares can be common and privileged. The common shareholders have right to participate and vote at meetings of shareholders which are the main managing unit of shareholding company. The owners of privileged shares do not have right to vote at shareholders'meetings, except specially stated cases. But it is supposed that privileged shares provide much higher size of dividends than common ones. As a rule it is described in articles of association what part of net profit of emissive company goes to dividend pays by privileged shares. Usually the dividend rate makes 10 per cent from net profit. The right to getting dividends is given to the owners registered in the list of shareholders on the moment the date of cutting of the register comes (the date determined by Managing Board of an emissive company, on which the register gives the emissive company the full list of current holders), the dividends are transferred by the emissive company to the shareholder during the year from the shareholders' yearly meeting.

Dealing in shares is proceeded at special trade outlets – exchanges. Dealerships at such exchanges are realized by brokerage firms (brokers), which are the members of an exchange. Brokers, by order of their clients, expose applications for bidding at an exchange. If there are any opposite bids, bargains are concluded tacitly. An exchange, in turn, guarantees a well-timed clearing (calculations and security transference).

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