Stocks

A stock is a type of security used to signify ownership in a corporation. Stocks are generally bought and sold on an exchange. Stocks are of two types: common stock and preferred stock. The holder of the common stocks is entitled to certain voting rights which enable them to participate in the company’s governance processes. However, preferred shareholders do not enjoy any voting rights but are entitled to receive a certain amount of dividend payment before any dividends can be issued to other shareholders.