Friday, 4 November 2016

What is Stock?
Ans: A stock is a type of security that signities ownership in a corporation and represents a claim on part of the corporations assets and earnings.
                       
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                        There are two main types of stock Common and Preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights. but has a higher claim on asset and earning than the common shares. For example , Owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.
       
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                                                                                                                          Also known as "shares" or "equity".
                   A holder of stock (a shareholders) has a claim to part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, it a company has 1000 shares of stock out standing and one person owns 100 shares, that person would own and have claim to 10% of the company's assets.
                                                    Stocks are the foundation of nearly every portfolio. Historically they have out per formed most other investments over the long run.
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Stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock , it all means the same thing.
 
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                                                                   Holding a company's stock means that you are one the many owners (Shareholders) of a company and as such, you have a claim (albeit usually very small) to every thing the company owns. Yes, this means that technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earning as well as any voting rights attached to the stock.
       
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A stock is a general term used to describe the ownership certificates of any company. A share , on the other hand, refers to the stock certificate of a particular company. Holding a particular company's share make, you as shareholder.
                                Stocks are two types - Common and preferred. The difference is while the holder of the former has voting rights that can be exercised in corporate decisions, the later doesn't However, Preferred shareholders are legally entitiled to receive a certain level of dividends can be issued to other shareholders.
                There is also something called convertible preferred stock This is basically a preferred stock with an option of converting into a fixed number of common shares, usually any time after a predetermined date.
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