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| Stock | A share of a company's stock translates into ownership of part of the company. Thus, when you own any shares of a company's stock, you own part of the company. | |
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Additional comments:
How much you own depends on how many shares of stock you have.
Holders of common stock are the last to be paid any profits from the company but are likely to profit most from any growth it has. Owners of preferred stock are paid a fixed dividend before owners of common stock, but the amount of the dividend doesn't usually grow if the company grows. |
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Related Terms | ||
Convertible Securities Convertible securities can be exchanged or converted into common shares. Examples are convertible preferred stock, convertible bonds and the like. Such securities ... Dividend When companies pay part of their profits to shareholders, those payments are called dividends. A portion of a company’s profit paid ... Financial Leverage Financial leverage relates a company's long-term debt and preferred stock to the company's common equity. ... | ||
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