Stock investment is one of the most potentially profitable investments you can make today, helping you build long-term wealth. As you grow your portfolio, you may be looking into investing in KFC, Pizza Hut and Taco Bell stock. But to do so, you must determine who owns these brands before you attempt to invest.
What Are Stocks?
According to the writers for the U.S. Securities and Exchange Commission, stocks, sometimes referred to as equities, are a share of ownership in a company. Many investors choose to buy stocks because stocks appreciate when the stock prices rise, and stockholders receive dividend payments when the company distributes part of the earnings to stockholders. Of course, there is risk associated with this sort of investment, as well; if the share price of a company's stock falls, investors stand to lose money.
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There are two main types of stocks, common and preferred, which fall under growth, income, value and blue-chip categories. Common stockholders receive dividends as well as gain the ability to vote in shareholder meetings.
Preferred stockholders generally don't have voting rights; however, they receive dividend payments before common stockholders. They also have priority over common stockholders when the company files for bankruptcy and liquidates its assets.
Opening a Brokerage Account
To invest in stocks, you will first need to open an investment account, called a brokerage account. Many companies offer brokerage accounts, and determining the right one depends on your goals for your portfolio. Once you open a brokerage account, you can fund it through an electronic funds transfer, by mailing a check or wiring money.
To determine what type of brokerage account best suits your needs, consider why you're investing and go for there. If you plan on investing to create a rainy day fund and want easy access to your money, then a standard brokerage count is likely the best for you.
However, if you're investing to save for retirement, look into opening an individual retirement account (IRA). There are several types of IRA accounts: traditional and Roth IRAs, as well as types for those who are self-employed and small business owners. While IRAs have their benefits as tax-advantaged accounts, they can be challenging to withdraw from before you reach retirement age. When researching brokerage accounts, many companies offer a variety of tools that can help you build your investment portfolio, such as educational tools, research and investment guidance.
Investing in Yum! Brands Subsidiaries
Now that you have opened a brokerage account and funded it, you can start investing in stocks. When determining which stocks to invest in, you should consider how you plan on diversifying your portfolio and learn the basics of evaluating stocks. A good rule of thumb is to always invest in businesses that you understand and feel that you ethically support. After all, you are spending your hard-earned money so that the company can grow and thrive.
To invest in Taco Bell, KFC and Pizza Hut stock, you won't be able to find them in the stock market by searching the restaurants' names. They're Yum! Brands subsidiaries, and to invest in these restaurants' stocks, you will need to purchase Yum! Brands Inc. stock. Don't look for the Pizza Hut ticker symbol. Instead, you'll want to find the YUM symbol on the New York Stock Exchange to buy Pizza Hut stock or Taco Bell stock.
Yum! Brands Inc. broke away from PepsiCo in 1997, Yum! Brands writes. Based in Louisville, Kentucky, Yum! Brands has over 50,000 restaurants in over 150 countries and territories. They were named to the Dow Jones Sustainability North America Index in 2019 and were ranked among the top 100 Best Corporate Citizens by 3BL Media in 2020.
Consider also: Investing in Stocks for Beginners: Introduction & Best Investment Apps for Beginners