|
Stock Market Trading
Common Stocks
Preferred and common stocks and shares, shares holders of corporations and
public companies, dividends, stock market, trading, income, profit.
Common and proffered stocks (also called common and preferred shares) are the
most commonly traded types of shares in the stock market. Common stocks (common
shares) represent a degree of ownership in the corporation. The degree of
ownership is equal to the number of voting shares held in relation to the total
number of the company's voting shares that have been issued.
Common stock owners have the right to vote on questions that affect the
corporation in proportion (percentage) to the number of shares that they hold.
The election of the directors of the corporation is a responsibility and right
of the common shareholders as well. The board of directors of the corporation
represents the common shareholders' interests when making major decisions for
the company. Still, some types of common stocks may have limited voting rights
or no voting rights at all.
The majority of investors come to the stock market for the purpose of making a
profit when the price of the shares rises. However, no matter which type of
common shares is owned, the common shares provide additional income through
dividends that are paid to the shareholders in proportion to the number of
shares that they hold.
In case of the company's (corporation's) liquidation, common shareholders have a
right to the company's assets in proportion to their degree of ownership. They
may exercise this right only after the claims of creditors, bondholders, debt
holders and preferred shares holders have been satisfied.
V. K.
Copyright 2004 - 2010 Highlight Investments Group. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Start using our Professional Charts
and Make Money with our System!
Sign up for a 30-Day Free Trial Now!
(credit card not required)
| 
