Type of share (stock)

Stocks are divided into two types there are common stock and preference stock

  1. The common share (ordinary shares), which give the right to the shareholder to share in the earnings of the firm as and when they occur, and to vote at the firm’s annual general meetings and other official meetings.
  2. preference shares (preference stock) which give the right to the shareholder to a fixed periodic income (interest) but generally do not give him or her voting rights.
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