What are stocks, and how WBS makes trading them online easy and secure?

Find out what are the different types of share, why they are issued and why to trade with WBS

WBS provides you the opportunities to profit by investing in the biggest companies in the world. Just remember, in online trading, you can make money no matter where the share price goes. That is because you do not hold the actual share, and you are free from the hassle of traditional stock investing. You can start investing from as little as $200 and profit significant companies out there.

What are the stocks?

The stocks are a financial instrument for a specific business to raise capital by sharing it with investors. As stock and share interchangeable terms, we could say that every share is a piece of the company. Every stock has an equal portion from any profits. And these profits are called dividends. That is why every shareholder gains when the company rises in value. On stock exchanges, only shares of publicly traded companies could be traded.

What are the different types of shares?

Two types of stocks exist — preference and common. The preference type has the following advantage: in the case of liquidation of a company, a holder of a preference share type will be paid first right after settling the debts. A thing that we have to keep in mind when one holds such type of share does not have any rights to vote. Further, this type of stock can be broken down by type of dividend payment and structure and by maturity terms.

On the other hand, the common stocks are also called ordinary or equity shares. This type is the most often traded type of shares. They are equal in value and have rights in voting and paying out dividends and are traded on the stock exchange.

What are the cumulative preference shares?

When having this type of shares, the holder does not lose anything because they are payout the arrear in subsequent years. The cumulative preference stocks guarantee a fixed rate of dividend.

What are the non-cumulative preference shares?

They are similar to the cumulative type, but they do not accumulate. They guarantee a fixed rate of dividend, but if the profit is inadequate, the holders do not receive dividends.

What are the participating preference shares?

They guarantee a fixed rate of dividends, and the surplus profit is shared.

What are the non-participating preference shares?

What are the non-participating preference shares?

What is the case with the convertible preference shares?

The key difference about this type of stock is that they could transform into equity shares for a specific, previously fixed period.

What about non-convertible Preference Shares?

The name says it all – this type of shares can not be converted into equity shares.

Let us explain the redeemable preference shares

The redeemable type could be repaid.

And what about the irredeemable preference shares?

This type of shares does not carry any arrangement for redemption and is only paid out only in the case of winding up.

What is the main reason for a company to issue stocks?

Every company wants to grow or at least must grow because others in the segment are growing.

When lying up the big strategic plan, you have to have the capital to back it up. Issuing stocks is a way for a company to get money from investors and use it for its good.

Why are shares trading with WBS exciting?

Imagine having the shares of all the biggest companies in the world like Amazon, Apple, Google, Facebook, Tesla in your phone. You can profit from them no matter where you are. Everything is at the tip of your finger. You can count on a personal account manager who will be at your side to explain all the cool features of the platform, spot a profitable opportunity, and any other questions that you might have.

What are the extra benefits of trading ETFs on the WBS platform?

Our platform provides you with protection from loss positions from which you can only gain money.
On top of that, you have training sessions and a personal account manager who will answer all your questions about the platform and trading itself.

  Register here and check other opportunities to profit from WBS.

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