What Are Stocks?
Stockholders are therefore entitled to that portion of the corporation’s assets and earnings.
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Types of Stock
There are two types of stocks: common and preferred stock.
2.) Preferred Stock doesn’t come with the right to vote, but does come with the right to receive dividends prior to common stockholders and higher priority in getting paid back if the company goes bankrupt and is liquidated.
What is a Stock? Further Things to Know About Stocks
Stocks are primarily bought and sold on stock exchanges, such as the New York Stock Exchange (or NYSE), but can be traded privately as well.
Although the bond market is larger than the stock market, the stock market receives more press.
Historically, stocks have had a higher return than other types of investments over time.
The trade of stock is regulated by the Securities Exchange Commission, or SEC, in order to protect investors by maintaining a fair and orderly functioning of the securities markets.
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What are Stocks? — FAQs
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.