These days, it seems just about everyone knows what a stock is, not to mention having a few favorites they watch. But what exactly is a share of stock? When you buy stock in a company that is publicly traded, you are purchasing ownership shares in that business. As a stockholder, you share the value and the risk of that company. There are two basic types of stock: common and preferred. Common stock is sold initially by a corporation and then traded among investors. Preferred stock frequently pays a higher fixed dividend than common stock and preferred stockholders are given first right to assets/dividends. Common stockholders have voting rights. Preferred stock generally carries no voting rights.
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