Shares (also referred to as stocks)

Wed, Jul 16th,2014
A share or stock is a financial instrument in the form of equity ownership. It represents a share of the ownership of a corporation which acts as a claim on the corporation's assets and earnings. Common stocks (or ordinary shares) usually entitle the shareholder to vote (in person /by proxy) in the election of directors and other corporate matters taken up at shareholder meetings. Preferred stocks generally do not confer voting rights but the holders of preferred shares have a prior claim on the assets and earnings of the company in comparison to common stockholders. For instance, dividends must be paid to prefer stockholders before any can be paid to common shareholders.