Basics Stock Markets

Types Of Stocks

Of course, that higher In a well run company, over the long run, shares will appreciate which will provide shareholders with better returns than any other investment. Shareholders are entitled to one vote per share which allows them to elect board members, who watch over management. If the company generates. Of course, that higher return comes from taking on higher risk.

In a well run company, over the long run, shares will appreciate which will provide shareholders with better returns than any other investment. Shareholders are entitled to one vote per share which allows them to elect board members, who watch over management. Often, there is a premium offered to the profits that the company generates. A company can purchase the shares of a preferred shareholder anytime. Bondholders get paid first however.

Preferred Stock This type of ownership does not come with the same voting rights as common shareholders (although some companies allow preferred shareholders receive payment before common shareholders. Are some shareholders more special than others? Preferred shareholders? In the case of a bankruptcy, preferred shareholders are paid.

This appropriately named type of ownership does not come with the same voting rights as common shareholders who's dividend is far from guaranteed.