Stocksare equity investments that represent ownership in a company. Stocks can also go by the name of “shares” or “equities” which essentially mean you are a (part) business owner. Purchasing company stock comes with certain rights which may include receiving a dividend as well as voting rights at shareholder meetings.
A portion of ownership in a corporation. The holder of a stock is entitled to the company’s earnings and is responsible for its risk for the portion of the company that each stock represents. There are two main classes of stock: common stock and preferred stock.
Common stock is a form of corporate equity ownership, a type of security.
here is no unified classification of common stock. However, some companies may issue two classes of common stock. In most cases, a company will issue one class of voting shares and another class of non-voting (or with less voting power) shares. The main rationale for using dual classification is to preserve control over the company.
his interest rate remains constant on most–but not all, preferred issues. A small number of issues have a rate that “floats,” based upon a baseline such as Libor.
Preferred shares normally carry no voting rights (unlike common shares).
Preferred shares generally have NO maturity date (most are perpetual).