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Forex Precog Review One of the more common underlying assets binary options traders choose to invest in are stocks. A long list of stocks is available for options trading, spanning from Nike to Barclays and British Petroleum. The list is growing as binary options sites add new stocks to their portfolio like Akbank Turk, Deutsche Bank and Volkswagen.
For those of you who are just starting out your binary options career, let's go over the definition of a stock. A stock or capital stock of a company represents the original capital paid or invested into a business by its founders. It functions as a safety net for the creditors of a business since it cannot be withdrawn to their disadvantage. Now, it gets a bit more complicated because the stock of a business is divided into shares.
Depending on the total amount invested into the company, a share has a certain declared face value, commonly known as the par value of a share. The par value is the minimum amount of money that a company may issue and sell shares. For example, binary options traders can invest in Nike, a company that, in 1980, became publicly traded with an Initial Public Offering of 2,377,000 of Class B Common Stock on the New York Stock Exchange with the symbol NKE.