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Describe "Stocks"

Stocks


In general, the ownership certificates of any corporation are referred to as stocks. On the other hand, a share alludes to a certain company's stock certificate. You become a shareholder if you possess shares of a specific corporation.

There are two categories of stocks: ordinary and preferred. The distinction is that whereas the owner of the former can exercise voting rights in company decisions, the latter does not. However, before any dividends are paid to other shareholders, preferred shareholders have a legal right to a specific amount of dividend payments.

Additionally, there is a thing known as "convertible preferred stock." Essentially, this is a preferred stock with the option to convert at any point after a set date into a predetermined number of common shares.


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