Ask people who have recently engage in stock trading and some of them would probably tell you that one of the reasons why they are encouraged to get into this field is the movie, “The Pursuit of Happyness”.

In fact, many people who are in stock trading right now have once or twice thought about going into stock trading. It all look so easy considering you just need to make a few phone calls and meet some people and talk to some high brass firms. It is all about presentation they say. It’s important that you have the know how to say things at the right time. Now for people who are seriously considering stock trading as a career here are some important things you need to know.

1. What are the types of stocks. There are basically two types of stocks available—the common stock and the preferred stock. The type that most individuals hold is called the “common stock”. Here, the trader represents the majority of stock and he or she reserves the rights when it comes to voting people in the management as well as also calls the shots when it comes to share in dividends. The other type is called as the “preferred stock”.