unit 15 stocks and shares.pptVIP

Unit 15 —Stocks and shares Types of Stock Common Stock vs. Preferred Stock A share of common stock in a firm represents an ownership interest in that firm. Common stockholders vote, receive dividends, and hope that the price of their stock will rise. Preferred stock is a form of equity from a legal and tax standpoint. Differences between Common and Preferred Because preferred stockholders receive a fixed dividend that never changes, a share of preferred stock is as much like a bond as it is like common stock. Preferred stockholders do not usually vote unless the firm has failed to pay th