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Stocks Shares

Stocks shares or shares of stock rather, are written articles that represent the amount of money that is invested in a company by individual shareholders. The company issuing the stock shares determines what class of shares it will issue as well as how many shares it will issue. Each shares that is bought and sold represents ownership in the company and that ownership entitles the share holder to certain rights, whether that is voting rights, dividend rights, etc.

The dividend paying stocks are paid depending upon the class of stock and the class of stock determines how much money is paid for each share of stock in the corporation. Stocks shares are classified as par, no par, common stocks, preferred stocks, participating stocks, and more. Each certificate for each share is marked with the amount of par which is the minimum amount of money that must be paid for the share. Shares certificate that are marked as no par have no minimum amount that must be paid for the share. This decision is made as the company incorporates itself.

The preferred shareholders are paid dividends first and then the rest is split between the common shareholders. If there are no preferred shareholders, then the dividends go straight to the common shareholders.

When discussing stocks shares and trading and investing it is important to know what par value is. Par value is the dollar value that is assigned to share of stock and it is the minimum amount in which each share can be sold. Businesses must sell shares of stock so that they can capitalize on the corporation. This provides more money for the corporation in addition to the money of its owners. This money is separate and as a result it prevents the shareholders and stock investors from any personal liability for debts of the corporation.

There is not a requirement for par value when dealing with stocks shares and some corporations have a no par value. That means there is no minimum or maximum amount in which each share must be sold. When there is no par value, the board of directors assigns a value to the stock below which the shares cannot be issued when stock investing.

There is a lot more to stocks shares that investors must learn about before they begin to invest in stocks. Continue to learn about shares of stock as it applies to long term investing as well as short term stock trading. Also learn about what factors affect stock prices and how you can interpret these changes in the markets.

Market Direction: There are many breakouts occurring in this market. The candlestick signals and patterns have been directing us to them. Why is this occurring an inordnant percentage of the time? Consider investment psychology in these market conditions. The Dow and the NASDAQ have had a steady and consistent uptrend ever since the appearance of a cradle pattern in early July. As the markets move steadily higher, investor sentiment dismisses the negative sentiment and starts turning more positive. This usually leads to exuberant buying as the top of the trend gets near.


On individual stocks, the same dynamics occur. As the price continues in a steady uptrend, at some point  investor sentiment becomes very exuberant. The longer a bullish trend persists, the greater the probabilities of seeing a breakout to the upside. As illustrated in our recommendation of OREX, the Fry Pan bottom pattern/cup and handle pattern is candlestick evidence that investor sentiment is growing. Without any deterrents that dissuade the positive outlooks, such as drastic downturns in the market in general, investors continue to grow more confident. This is what eventually leads to high profit breakout patterns.


Do all candlestick patterns breakouts end up with huge gains? Obviously not, but the probabilities of participating in a big price move is much greater when utilizing the information built into the patterns that have high probability results throughout the years. Candlestick signals and patterns makes analyzing a price trend very easy. That information becomes more valuable when analyzing what the results can be for individual stocks. Keep in mind, prices do not move based upon fundamentals, prices move based upon the perception of fundamentals. The longer a market uptrend continues, the more enthusiastic investor perceptions become.

Members' Chat Session tonight 8 PM ET. Check the Members' Area for instructions.

Reschedule - Due to a schedule conflict, the September 26, 27 Option Training has been moved to October 16, 17 2009. Sorry for the inconvience.

Good investing,

The Candlestick Forum Team

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