Common and Preferred Stock
There are a number of different categories of stock that makes up a joint stock company. Two of which are the most fundamental ones: common and preferred Stock.
The most widely applied stock is called common stock. If an individual owns a share of common stock, that individual is issued a partial ownership of the company. A holder of common stock is given the right to vote in corporate decisions regarding company matters. Generally, the number of votes shareholders have in common stock is directly proportional to the amount of shares owned, but it may differ in some other joint stock companies. Although major decisions and movements are being passed down by the board of directors who own the company, common stock shareholders have the power to impact their perspectives in some manners as well.
[Read more →]
