The difference between common stock and
Concept Introduction:
Stock: The stock represents the company’s ownership holding a stock makes you the owner of that particular company’s asset and income. In other words the term stock is used as a certificate of ownership, mainly there are two types of stock; common stock and preferred stock.
Common stock: Common stock is the ordinary stock; it represents the ownership and gives the holders the voting right.
Preferred stock: preferred stock is the part of company’s capital and it carries the preferential right over the dividend. The company has to pay the dividend to its preferred stock holders irrespective of the company’s financial position.
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