Stock are of two types namely common and preferred stock. Let has have .a brief outlook of two types of stock.
Common Stock
The implication of the name itself will tell that stock is common one. Most people come forward to common stock. For many years it has been noted that the best returns comes only from the common stock, whether the company liquidates or rises above, the shareholders get their amount until bond holders, creditors and preferred shareholder get it.
Preferred Stock
Regarding preferred stock their ownership is not to a full extent. To some degree they own it as their rights to vote vary. Fixed dividend is forever for preferred stock which is a guaranteed one. To add to its advantage they get the pay even if company liquidates. Optimistically if one thinks it can be said as its state is in between bonds and common share.
Common Stock
The implication of the name itself will tell that stock is common one. Most people come forward to common stock. For many years it has been noted that the best returns comes only from the common stock, whether the company liquidates or rises above, the shareholders get their amount until bond holders, creditors and preferred shareholder get it.
Preferred Stock
Regarding preferred stock their ownership is not to a full extent. To some degree they own it as their rights to vote vary. Fixed dividend is forever for preferred stock which is a guaranteed one. To add to its advantage they get the pay even if company liquidates. Optimistically if one thinks it can be said as its state is in between bonds and common share.
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