When the company whose shares you have bought makes a profit you will receive that profit in the form of dividends.

Ownership of shares is normally called equity.

There are two main types of stocks. "Preferred" which normally pay regular dividends and "common" which often gives you more rights.

Which one you choose will depend on what you are trying to achieve.

To buy stocks you normally need to have an account with a broker.

The type of broker you will need depends on what type of service you require from the broker.

If you want to have full access to reports on particular shares and be able to ask for advice from the broker, then you would normally opt for a full service broker.

If you are independently minded and don¡¦t require recommendations or reports and only wish the broker to execute your orders, then you would opt for a discount broker.

Opening an account with a broker is similar to opening an account with a bank. You will be asked for personal information and given forms to fill in.

Here are the main exchanges out there: (you will only need to use the North American ones but the extra ones are good to have in reserve in case you want to do research )

Where Are Stocks Traded?

The most common place is in a stock exchange. Exchanges are physical locations where market participants are brought together in once place.

The most famous of the exchanges is of course the New York Stock Exchange where an estimated 12$ trillion change hands each year.

They can also be traded over the counter (OTC). OTC transactions are done through a network of telephones and computers connecting dealers to form a market.

I could go on and discuss this for ages but that's all you really need to know...

I suggest you move on to the next security which are FUTURES

Below you will find a list of the majority of stock markets around the world:

Argentina

•MERVAL - 12 Companies

Australia

• S&P/ASX 200

Austria

•ATX (index)

Belgium

• BEL20

Brazil

• Ibovespa - Bovespa Index

• IBX - Brazil Index (~100 companies)

• IBX50 - Brazil Index (50 companies)

• IBVX-2 - Valor Bovespa Index (with Valor Econômico newspaper)

• IEE (index) - Electric Power Index

• IGC (index) - Special Corporate Governance Stock Index

• ITEL - Telecommunication Sector Index

Bosnia and Herzegovina

• BIRS - main market index

• FIRS - investment funds index

• ERS10 - power utility index

Bulgaria

• SOFIX

• BG40

Canada

• S&P/TSX 60

• S&P/TSX Composite Index

• S&P/TSX Venture Composite Index

Chile

• IPSA

• IGPA

China

• SSE Composite ([4])

Croatia

• CROBEX

• CROBIS

• CROEMI

Cyprus

• CySE GENERAL

• FTSE/CySE20

Czech Republic

• PX 50

Denmark

• OMX Copenhagen 20 (OMXC20)

• OMX Copenhagen (OMXC) (all share)

Estonia

• OMX Tallinn (OMXT)

Finland

• OMX Helsinki 25 (OMXH25)

France

• CAC 40

• SBF 250

Germany

• DAX

• TecDAX

• NEMAX 50 (discontinued in 2004)

• MDAX (Mid Cap)

• SDAX (Small Cap)

• GEX

Ghana

• GSE All-Share Index

Hong Kong

• Hang Seng Index

• HSI-Commerce and Properties

• HSI-Finance

• HSI-Utilities

• HSI-Properties

• Hang Seng China Enter Index

• Hang Seng MidCap 50 Index

• Hang Seng China-Aff Corp Index

• Hang Seng 100

• Hang Seng IT Index

• Hang Seng IT Portfolio Index

• GEM (Growing Enterprise Market) Index

Hungary

• BUX

• BUMIX

• RAX

Iceland

• OMX Iceland 15

India

• NSE-50 (also called Nifty)

• BSE Sensex

• CMIE COSPI

• BSE 100

• BSE 200

• BSE 500

• BSE TECK

• BSE IT

• BSE FMCG

• BSE CD

• BSE Metal

• BSE PSU

• BSE mid-cap

• BSE small cap

• BSE Auto

• BSE Pharma

• Nifty Jr.

Indonesia

• IHSG (Indeks Harga Saham Gabungan — Composite Stock Price Index), also called Jakarta Composite Index

• LQ-45

• JII (Jakarta Islamic Index)

• MBX (Main Board Index)

• DBX (Development Board Index)

Iran

• TSE Main Board Index

• TSE Secondary Board Index

• TSE WAX INDEX

• TSE INDUSTRIAL INDEX

• TSE TEDPIX

• TSE TEDIX

• TSE TEPIX

• TSE SAX ( 50 Co. Price Weighted Average )

Ireland

• ISEQ Index - Dublin Stock Exchange

Israel

• TASE 100 - Tel Aviv Stock Exchange

Italy

• MIBTel

• S&P/MIB

• MIDEX

• All STARS

• STAR

• TechSTAR

Japan

• Nikkei 225

• Topix

Jordan

• ASE Weighted Index

Kenya

• NSE 20 Share Index

• AIG 27 Share Index

Latvia

• OMX Riga (OMXR)

Lithuania

• OMX Vilnius (OMXV)

Malaysia

• Kuala Lumpur Composite Index

• Second Board

• MESDAQ

Note that the KLCI and Second Board comes under the umbrella of Bursa Malaysia.

Mexico

• Indice de Precios y Cotizaciones (IPC) ("Bolsa index")

Morocco

• MASI index (Moroccan All Shares Index)

• MADEX index (Moroccan Most Active shares Index)

Moldova

• EVM Composite index (Moldovian all shares Index, more details on www.evm.md)

Montenegro

• Index MOST

Netherlands

• AEX index

• AMX index (Midcap)

• AScX index (Small Cap)

New Zealand

• NZSX50

Nigeria

• NSXA-B index (The All-Share Index)

Norway

• OSE All Share

Oman

• MSM-30

Pakistan

• KSE 100 Index

• KSE All Share Index

• KSE 30 Index

• LSE 25

• ISE 10

broad-base index since 1947

Palestine

• Al Quds Index

Peru

• IGBVL 20 shares main index

• ISBVL 20 shares index

Philippines

• PSE Index (PSEi)

• PSE All Shares Index

• PSE Financials Index

• PSE Industrial Index

• PSE Holding Firms Index

• PSE Property Index

• PSE Services Index

• PSE Mining & Oil Index

Poland

• WIG

• WIG 20

• mWIG 40

• sWIG 80

Portugal

• PSI-20

• PSI Geral

Qatar

• DSM-20

Romania

• BET-10

Russia

• RTS Index (RTSI)

• CSFB ROS Index

• RTX

Saudi Arabia

• Tadawul

Singapore

• Straits Times Index (STI)

• United Overseas Bank SESDAQ (UOB-SESDAQ)

South Africa

• ALSI

South Korea

• KOSPI

Spain

• IBEX 35

• MADX

• Mercado Continuo

Sweden

• Attract 40

• OMX Nordic Mid Cap

• OMX Stockholm 30 (OMXS30)

• OMX Stockholm PI (OMXSPI)

Switzerland

• Swiss Market Index

Taiwan

• Taiwan Capitalization Weighted Stock Index (TAIEX)

Thailand

• SET Index

• SET50 Index

• MAI Index

Turkey

• ISE-100 Index

Ukraine

• KAC-20

United Kingdom

• FT30 Index

• FTSE 100 Index

• FTSE MID 250 Index

• FTSE 350 Index

• FTSE All-Share Index

• FTSE Fledgling Index

• FTSE techMark Index

• FTSE AIM All-Share Index

United States

• CBOE indices

o CBOE DJIA BuyWrite Index (BXD)

o CBOE NASDAQ-100 BuyWrite Index (BXN)

o CBOE S&P 500 BuyWrite Index (BXM)

o CBOE Volatility Index (VIX)

• Dow Jones & Company indices

o Dow Jones Composite Average

o Dow Jones Global Titans

o Dow Jones Industrial Average

o Dow Jones Transportation Average

o Dow Jones Utility Average

o Dow Jones U.S. Large Cap Growth

o Dow Jones U.S. Large Cap Value

o Dow Jones U.S. Small Cap Growth

o Dow Jones U.S. Small Cap Value

o Dow Jones U.S. Total Market

o Dow Jones Wilshire 4500

o Dow Jones Wilshire 5000 Total Stock Market

• Goldman Sachs indices

o GSTI Semiconductor Index

o GSTI Software Index

• Nasdaq indices

o NASDAQ Composite

o NASDAQ-100

• Russell Indexes (published by Russell Investment Group)

o Russell 3000

o Russell 3000 Growth

o Russell 3000 Value

o Russell 1000

o Russell 1000 Growth

o Russell 1000 Value

o Russell 2000

o Russell 2000 Growth

o Russell 2000 Value

o Russell Top 200

o Russell Top 200 Growth

o Russell Top 200 Value

o Russell MidCap

o Russell MidCap Growth

o Russell MidCap Value

o Russell 2500

o Russell 2500 Growth

o Russell 2500 Value

o Russell Small Cap Completeness

o Russell Small Cap Completeness Growth

o Russell Small Cap Completeness Value

• Standard & Poor's indices

o S&P 500

o S&P Completion

o S&P 500/BARRA Growth

o S&P 500/BARRA Value

o S&P Midcap 400

o S&P Midcap 400/BARRA Growth

o S&P Midcap 400/BARRA Value

o S&P SmallCap 600

o S&P SmallCap 600/BARRA Growth

o S&P SmallCap 600/BARRA Value

Zimbabwe

• Zimbabwe Industrial Index

• Zimbabwe Mining Index

Equity indices ordered by industry (in alphabetical order).

Energy

• Amex Oil Index - XOI (companies nationality: international) (Amex Oil Index - XOI)Electronics

Electronic tech, computers, hardware, software, services, Internet

• AMEX Computer Hardware Index

• AMEX CSFB Technology Index

• AMEX Disk Drive Index

• AMEX Morgan Stanley High Tech Index

• AMEX Semiconductor Index

• CBOE GSTI Composite Index

• Copenhagen SE Software and Computers

• Copenhagen SE Technology and Hardware

• Dow Jones Internet Composite Index

• Dow Jones Internet Commerce Index

• Dow Jones Internet Services Index

• Dow Jones Technology Titans 30 Index

• FTSE TECHMARK 100

• Germany CDAX Software Return Index

• Germany CDAX Technology Return Index

• GICS Information Technology

• Hang Seng Composite Information Technology

• Iceland Information Technology Index

• Ireland ISEQ Information Technology Price Index

• Ireland ISEQ Information Technology Return Index

• Kuala Lumpur SE Technology Index

• Mumbai BSE TECk Index

• Nasdaq Computer Index

• NASDAQ-100 Technology Sector Index

• OMX Helsinki Information Technology Price Index

• Oslo SE Information Technology

• Oslo SE Software and Computer Services

• Oslo SE Technology Hardware and Equipment

• PHLX Semiconductor Sector (companies nationality: international) (PHLX *Semiconductor Sector (SOX))

• PSE Technology Index

• S&P Global 1200 Information Technology Index

• S&P/TSX Capped Information Technology Index

• Stockholm SX Information Technology Price Index

• Stockholm SX Software and Computer Services PI

• Stockholm SX Technology Hardware and Equipment PI

• Sweden Affarsvarlden Hardware and Retail Distrib.

• Sweden Affarsvarlden Software

• TecDax Price Index

• Tel Aviv Technology Index

Finance

• PHLX / KBW Bank Index (BKX) (companies nationality: USA) (PHLX/KBW Bank Index (BKX))

Raw materials/Metals

• Amex Gold BUGS Index - HUI (companies nationality: USA, Canada) (Amex Gold BUGS Index - HUI)

Raw materials/Water

• Palisades Water Index (ZWI) (Palisades Water Index)