First thing that any investor should know about stock exchange basics is what a stock is. A stock is definitely an ownership share in the underlying company, and owners of stock will normally receive dividends from the underlying company if ever the business is productive. There are various types of stock, and this includes preferred shares, common shares, corporate stocks, development stocks, IPO stocks, very cheap stocks, and many other sorts. Blue chip stocks are stocks from respectable and thoroughly successful companies, just like Apple, PepsiCo, and Microsoft for example.