What is the stock market Recently, the stock market has been very popular, so many people ask about the stock market, how to invest in it, and what are the benefits that may accrue to you as a large or small investor, and the question that occupies the minds of many is is there safety when investing in the stock market? We explain In today’s article, what is the stock market and its types? Stock Market – Stocks are securities that are granted to the investor as a guarantee for his share in the capital of the company from which he wishes to buy shares. The investor can easily trade these shares whenever he wants, and he can recover their value once they are sold and transferred to those who wish to buy them. Bonds are paper guarantees registered and granted with trust, the purpose of which is to acknowledge the payment of an amount of money of known value with the addition of financial interest at a specific time. For entities or individuals that guarantee their rights at a known time, and it is tantamount to an acknowledgment by the holder of the bond of his entitlement to the value of the financial bond fixed in the papers. Stock Exchange – Shares of companies are offered on the Stock Exchange with calculated financial estimates. Securities are transferred that prove the speculator’s eligibility to participate in the company’s capital. At the beginning of each day, shares are traded, and stock prices vary between high and low. Stocks are affected by the large number of purchases, and sometimes the price decreases based on the large number of sales, and in many cases speculators in the stock exchange use rumors to force small investors to sell, and the rumor monger enters to collect shares sold at a cheap price. Types of shares There are types of shares that we explain in the following points: Ordinary shares are the most common shares among all types of shares, and they reflect the ownership of the company and clarification of the capital. In common stock is variable. Preferred shares are the investor’s ownership of part of the company’s capital based on the number of shares owned by him, and the profits of those shares are fixed, unlike ordinary shares, and do not give the right to run for the management of the company. Preferred shares are divided into: Cumulative shares: It allows the investor to obtain the value of the share and its profits at any time, even in the event of the company’s inability to pay the share value, and even if the company refuses to pay due to insolvency, he is granted a financial return linked to the company’s profits until payment. Non-cumulative shares: they do not guarantee any means of pressure on the company in cases of financial hardship, but they guarantee the right of the investor until the financial situation improves.