Basics of The Stock Market: What are “Stocks”?

“Stock/Stocks” is also known as “shares” or “equity.”

A stock is a share in the ownership of a company. It allows the holder to have a claim on the assets and earnings of the company that the stock is from. There are two main types of stock:

Common Stock: This type often gives the owner the ability to vote at shareholders meetings. It also many times allows the owner to receive dividends, a payment from the company to shareholders.

Preferred Stock: These usually do not have voting rights, but they give the owner a larger claim on assets and earnings compared to common shares.

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Nick is an author at holdencasey.com. He writes for all categories, but his specialty is defense and law. He normally writes from an unbiased viewpoint, but is known to provide a conservative opinion.
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