Preferred Stock

Preferred stock is a non voting certificate of equity in a corporation’s hierarchy of purchased ownership. It is generally assigned a right to an annual interest rate in exchange for no voting privileges, thus the title ‘Preferred Stock’.

Stock

Stock

The one single term mostly equated to capitalism is ‘Stock’. When a business is incorporated, stock is the core medium of exchange for the investment. The company issues a certificate referred to as stock in exchange for the investment – most often cash. This is the one true form of pure risk. Most other forms of investments generally have some form of collateral, credit, or cash flow to substantiate the investment.

Common Stock – Definition

Common Stock

A document indicating ownership in a corporation is often referred to as common stock. It identifies an equity position in a business. The document or certificate is commonly referred to as a security and provides certain rights to the holder (owner). These rights include voting and residual value upon liquidation of the company.

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