Stock (also referred to as equity or share) is a type of security that signifies ownership in a company and represents a claim on part of the corporation's assets and earnings. For instance, gold mining companies issue shares, which are commonly referred to asand silver mining companies issue shares, which are commonly referred to as .
Common vs. Preferred Stocks
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.
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