Becoming a shareholder in the stock market: what do you need to know?

From investor status to speculator passing the dividend method, becoming a shareholder in the stock market is the responsibility of anyone who wants to really get down to it. However, it is necessary to know where you are going. This article gives you the techniques needed to become a stock shareholder.

What is a shareholder in the stock market?

First of all, a shareholder is a capital investor who holds a marketable security or share which grants him prerogatives in the operation of a commercial company. The stock market is the intangible place where you can buy and sell stocks. It is therefore a marketplace where shares of companies are exchanged for money. The stock market shareholder is an investor who owns stocks or shares of companies in the stock market.

These shares are preferred shares. They do not confer any voting rights on its owner but rather give a right of pre-emption over traditional shareholders. This means that if the company goes bankrupt, when it is liquidated, they will be compensated before the regular shareholders.

How to become a shareholder on the stock market?

When you want to become a shareholder in the stock market, you should decide what type of investment you want to make. Is it short-term speculation, long-term investing, or the dividend method? Understand that the first essential thing to do before starting this activity when you don't have a skill is to take some training. So short-term speculation is about exploiting movements over short periods of time.

This is the most profitable method but the most complicated to master. You need a lot of capital to cover all the brokerage fees that impact this kind of strategy. Long-term investing is investing in one or more companies that you believe are growing with great potential for the future. The gains will obviously be much less impressive; but the risk is under control. The dividend method is more of an investment than speculation and is based on the acquisition of stocks. You buy stocks and companies pay you dividends at the close of their financial years.