" DEFINITION of 'Stock'
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.
Also known as 'shares' or 'equity.'
A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets. "
( http://www.investopedia.com/terms/s/stock.asp )
When people refer to stocks be it through a trading platform, though stock tickers, through television, etc. it is about common stocks unless otherwise specified. Voting rights are usually determined by share classes that will still trade as common stocks. Preferred stocks are rare, preferred stocks tend to be issued by banks, and preferred stocks as used as bond equivalent for institutions because they are more concerned with capital preservation as opposed to capital gains.
When people refer to stocks be it through a trading platform, though stock tickers, through television, etc. it is about common stocks unless otherwise specified. Voting rights are usually determined by share classes that will still trade as common stocks. Preferred stocks are rare, preferred stocks tend to be issued by banks, and preferred stocks as used as bond equivalent for institutions because they are more concerned with capital preservation as opposed to capital gains.
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