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Stockprices - In financial markets, stock is the
capital raised by a corporation through the issuance and distribution
of shares.
A person or organization which holds share of stocks is called
a shareholder. The aggregate value of a corporation's issued
shares is its market capitalization.
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Although
ownership of 51% of shares does
result in 51% ownership of a company, it does not give the
shareholder the right to use a company's building, equipment,
materials, or other property. |
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In most
cases, a stockbroker or any
other person who wants to sell securities (for example, stocks,
bonds, mutual funds,
etc.) must be licensed or registered to do so. About:
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While past performance is not a
guarantee of future results, historically stocks have performed better
over the long term than other types of investments (e.g., government
bonds, treasury securities). Stock
prices fluctuate for a wide range of reasons, and stock mutual
funds are subject to the same market risk as stocks. Not all stock
mutual funds are the same or have the same level of risk. Most stock
mutual funds fall into one or more of the following categories.
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There are several types of stock:
Common stock
Common stock, also referred to as
common shares or ordinary shares, are, as the name implies, the most
usual and commonly held form of stock in a corporation. Shareholders
of common stock have voting rights in corporate decision matters.
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Preferred stock
Preferred stock, sometimes called
preference shares, have priority over common stock in the distribution
of dividends and assets.
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Most preferred shares provide no voting rights in corporate decision
matters. However, some preferred shares have special voting rights to
approve certain extraordinary events (such as the issuance of new
shares, or the approval of the acquisition of the company), or to
elect directors.
Dual class stock
Dual class stock is shares issued for
a single company with varying classes indicating different rights on
voting and dividend payments. Each kind of shares has its own class of
shareholders entitling different rights.
Treasury stock
Treasury stock is shares that have
been bought back from the public. Treasury Stock is considered issued,
but not outstanding. |
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