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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. |