In the world of stock market investing we come across quite a bit of lingo. For beginners it can be very confusing trying to differentiate between common stock, preferred stock, Class A&B stock, etc., etc.


Well, if this sounds like you, you may be interested in a book I just started reading titled How to Read and Understand the Financial News by Gerald Warfield. Consider this book your guide to learning all the basics plus the ins and outs of stock market investing.

Here are a couple things I’ve learned so far:

1. Before dividends are distributed from the profit a company makes, the profit is taxed. Even after the dividends are given to investors, they are taxed again as income to the taxpayer! This is called double taxation. In my honest opinion, the government plays a very dirty game by reserving the right to take taxes - not just once, but twice!

2. The phrase “publicly owned” when used in a government context means government ownership. This could be at the local, state or federal level.

3. A combination of shares and cash can be given as a dividend.

Have any tips or info to share with beginning stock investors?