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What Are Stocks?

December 3, 2021

What Are Stocks?

Stock Market Profit Gray Chart

Stocks are 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.

  • 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).