Stocks are all the stocks in which ownership of a company is divided ownership. In American English, however, the stocks are collectively referred to as “stock”. A single share of this stock represents fractional share in an equal percentage to the whole number of outstanding shares. There are different types of stocks in the market such as common stocks, preferred stocks, dematerialized securities etc.
In order to buy and sell stocks, you have to obtain either a discount share or a direct stock purchase agreement. With these types of stock purchase agreements, you are not actually required to buy the stocks from the company but you are only allowed to sell their stocks after you resell the outstanding dividend to them. These types of stock purchase agreements are very commonly used by investors, because you do not have to actually store, maintain or manage any stocks in case you get a dividend. Selling the stocks will give you immediate profit without any effort from your part.
The shares on which you may buy and sell are referred to as common stocks. These shares represent a legal security of the company and are issued under the laws of limited liability. Common stocks are usually issued under the regulations related to the issue of public share or common stock. Companies issue stock to the public in many different ways, for example they may issue restricted shares, preferred stocks, ordinary shares, recapitalization stocks etc. You can purchase all kinds of stocks from different companies but you need to remember certain things.