Stock is represents the share in the ownership of a company. In the business world stock is called as shares. These shares are listed on the stock exchange. It is said that the stock exchange is the heart of any economy. So stocks are the most important aspect of a stock exchange. These stocks are held by number of people termed as shareholders. The class of the shareholder is determined according to the type of stock they hold. Huge profits can be made by dealing in the stocks. But one should have complete information of the stock price and other terms related to stocks.

Types of stocks

Common stocks are the typical shares. The common stocks have voting rights. These rights give a place for the shareholder in the corporate decisions. Common stocks holders are the representative of the company. There are high returns in this type of stock. Dividend received by the common stock is of fluctuating nature. During liquidation the common stock holders are the last one to receive their money.

 The preferred stocks are different from the common stock they do not have a voting right. In case of preferred stocks the company can purchase back the shares anytime they want at any reason. But they receive a fixed dividend from the company. During liquidation they are the first one to receive their money. It is basically more like a debt.
The preferred shares can be converted into the common shares. When these shares get converted they are termed as convertible preferred shares.