Investment Perspectives: A Guide in the Financial Sphere

• Common stocks: Holders of common stocks have the right to participate in voting at shareholder meetings and to receive dividends. They also have the right to a portion of the company's assets in the event of its liquidation. Common stocks provide a broader range of rights to shareholders but do not guarantee a dividend or a priority right to profit.
• Preferred stocks: Preferred stocks provide shareholders with certain advantages over common stocks. This typically includes guaranteed dividend income, a priority right to receive dividends over common stocks, and a priority right to capital return in the event of the company's liquidation. However, holders of preferred stocks often lack voting rights at shareholder meetings or have limited voting rights.

Stocks play a significant role in the investment process by providing investors with the opportunity to acquire ownership in a company. Purchasing stocks allows investors to become shareholders and gain a range of privileges, including the right to a share of the company's profits in the form of dividends and participation in voting at shareholder meetings, which enables them to influence the company's strategic decisions.

One of the key aspects of investing in stocks is the potential for capital growth. Investors buy stocks in the hope that their value will increase over time. This growth may occur as a result of improving financial performance of the company, market development, or other factors contributing to the increase in the business's value.

Furthermore, investing in stocks provides an opportunity for diversification of the investment portfolio. Diversifying stocks from different companies in various sectors of the economy helps reduce overall investment risk, as losses from investments in one company can be offset by profits from investments in other companies.

In the long term, stocks can also serve as a tool for preserving and growing capital. Successful investments in stocks allow investors to achieve financial goals such as retirement security or financial independence through the growth of stock values and receipt of dividends.

However, investing in stocks involves risk, and investors need to be prepared for potential market price fluctuations. Before making a decision to purchase stocks, thorough analysis of the company and markets is necessary to assess potential risks and opportunities.

There are two main ways: purchasing on the exchange and off the exchange. Purchasing on the exchange: This method involves buying stocks on the stock exchange. Investors can use online brokerage platforms or turn to brokerage firms to conduct stock market transactions. The advantage of buying stocks on the exchange is that it provides transparency of prices, asset liquidity, and the ability to choose from a wide range of companies.

Purchasing off the exchange (private sale): This method involves buying stocks directly from a private individual or company that is not listed on the stock exchange. Such transactions may occur directly between investors and stock owners without the involvement of the exchange. This method of investing may be less liquid and less transparent than trading on the exchange, but sometimes offers access to assets that are not available on the open market.

Both methods have their features and risks, and the choice between them depends on the investor's investment goals, preferences, and comfort level. Some investors prefer to trade on the exchange due to market transparency and liquidity, while others may prefer to invest in private companies or startups in hopes of higher returns.

Tips for novice investors:

1. Set financial goals: Define your investment goals and time frames to determine your investment horizon and strategy.
2. Develop a budget: Create a budget and allocate funds for investments, considering your financial obligations and risks.
3. Diversify your portfolio: Invest in various assets and industries to reduce risk and increase potential returns.
4. Research investment opportunities: Conduct market research and study the assets you plan to invest in to make informed decisions.
5. Start with small amounts: Begin by investing small amounts to learn the process and become accustomed to risk.
6. Keep an eye on the market: Stay updated on news and events affecting the market to make informed decisions.
7. Do not succumb to emotions: Investing requires patience and discipline. Do not let emotions influence your decisions.
8. Learn scientific methods: Familiarize yourself with the basic principles of stock and market analysis to assess investment potential.
9. Collaborate with professionals: Seek assistance from financial advisors or brokers as needed to obtain professional recommendations.
10. Invest for the long term: Keep in mind that investing is a long-term process. Do not expect instant results and stick to your strategy over time.

Basics and Practice of Brokerage Accounts

What is the function of a brokerage account?

A brokerage account is an account opened with a financial broker or investment company that provides access to trading on financial markets. Through a brokerage account, an investor can buy and sell various financial instruments such as stocks, bonds, funds, commodities, currencies, and others, according to their investment strategy.

Opening a brokerage account allows an investor to access the securities market and execute trading operations through a broker. Brokerage accounts can be opened for both individual investors and corporate clients, offering a wide range of investment opportunities depending on financial goals and risk tolerance.

With a brokerage account, an investor can also obtain information about the current state of the market, analytical reports, participate in various investment programs, and receive consultations from financial experts.

To achieve this goal, it is necessary to actively participate in the market, conducting transactions with assets, as well as receiving income from dividends and coupons. Novice investors are provided with information on important aspects of investing, while experienced participants can deepen their knowledge in the field of financial investments.