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Wednesday, July 24, 2013

Trading stocks which offer high dividend and help in earning capital gains

Trading stocks which offer high dividend and help in earning capital gains are bought and sold all over the world. Blue chip stocks are traded with pride and people all around the world buy these stocks for earning. Quality companies all over the world float their stocks and shares. The entities usually go for IPOs and through initial public offering such shares are floated within the market.

Blue chip stocks and top stocks usually entail following characteristics;

Technology giants, communication providers, top end financial institutions and oil and gas companies float their stocks within the market. These stocks are traded with pride. People buy and sell these stocks for capital gains.
The stocks are also held by the investors for long term purposes. They are held for dividends and earnings which are constant in the case of these stocks. It happens so that the top end companies and entities usually present their shares for initial public offering. The IPOs are usually oversubscribed which results in balloting. As a result of balloting shares are allotted to the general public and through which one can attain proper dividend. High end stocks are usually offered at a premium. The premium price is usually more than the face value of the stock. Top end stocks are in low circulation. This is so because the holder doesn’t often trade in these stocks and he or she keeps these stocks for dividend purposes. Quality stocks are traded less often and hence their prices remain speculative rather than actual. The derivative and the futures market have made the high end stocks more tradable. It happens so that people usually buy and sell these shares through PUT and through other options. 

The prices are speculated in advance and the prices are pre determined for future trading. It makes the seller and the buyer safe and the trading for the high end stock possible. Online resources and the internet have created revolution in the stock market and the trading world. These days one can buy and sell stocks through different online portals. This makes the job of the broker easy and the commissions constant. The online trading resources not only offer trading opportunities to their investors but they also provide key data and analysis to user. They make sure that the investor makes the right decision regarding the sale and the purchase of shares and also pitch in from time to time with the expert advice. Trading websites are usually owned and managed by stock brokers who trade on the behalf of the clients. They offer guidance to their clients and also deduct commission on each transaction. Various accounts are offered in this respect by the brokers. High end accounts are usually expensive and have a minimum balance requirement. The low end accounts can be opened at will and may not require minimum balance requirement.

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