Monday, August 4, 2008

Instruments traded in the Stock Market

The instruments traded in the stock market are ordinary shares, preference shares, warrants, bonds, loan stocks, options, Unit Trust, etc.

Among all the different securities traded in the market, ordinary share is the most popular securities traded.

Ordinary Shares

When you own some ordinary shares of a company, you are known as a shareholder and you own part of the company. You are entitled to a portion of the profits after deduction of expenses, taxes and payment of debts. The profits you received are known as dividends.