Stocks and stock funds: What’s the difference?

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Understanding the terminology is often the first step to becoming a successful investor. FMTNews FMTLifestyle

Some basic knowledge can help investors decide between the many options available.

If the shares are sold before the company distributes its profit, you will not get a share of this bottom-line performance. “Cap” is short for capitalisation – the value of shares the company has listed on the market. There is also a choice between stocks in different sectors and industries, such as technology stocks, financial stocks or those from the food and beverage industry such as Coca Cola.can be risky as prices can go up as well as down. There is a risk of losing the entire amount in each equity investment.

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