Individual Stocks

Western New York’s trusted financial advisors; The Financial Guys can assist you in meeting your financial and investment goals with individual stocks. Most people say that they’d love to invest in the stock market but they simply don’t know where to start. The Financial Guys will provide you with the knowledge base that you need in order to make the investment decisions that are right for you.

What are individual stocks?
When you buy stock in a company, you’re purchasing shares of a company and therefore you have a claim against assets and income of that company. There are two different kinds of stock: common and preferred.

Common stock typically gives you the right to vote at shareholder meetings and to be paid dividends. With preferred stock, you don’t typically have the right to vote at shareholder meetings but you would receive dividends first and before common stock holders if the company has to liquidate due to bankruptcy. Preferred stockholders also commonly get higher earnings on income and assets.

What is the return rate on stocks?
The rate of return on any individual stocks that you own is going to depend on the market and other varying factors. Stocks go up and down depending on the market and other conditions. Most people own individual stocks in more than one company, so while some stocks may be down, others may be up and then you’d need to look at your return rate for your whole portfolio.

How long do people keep stocks for?
How long you keep individual stocks for depends on what your goals are. Buying individual stocks gives you the option of investing short term or investing long time. The Financial Guys will discuss your goals with you to help create a diversified stock plan.

Can I buy stock in any company?
In order to buy individual stocks, the company that you’re interested in will have to be publically traded. Some companies prefer to stay private (company owned) and therefore you won’t be able to purchase stock. Companies that are privately owned oftentimes offer stock (shares) to their employees and this is most commonly referred to as profit sharing.
Individual stocks are one of the building blocks of having a diversified portfolio in order to meet financial or retirement goals. If you’re interested in individual stocks, contact the Financial Guys in Buffalo, New York for more information about their stock broker services.

Diversification does not eliminate the risk of market loss.