Definition: A stock is a widespread term used to explain the ownership certificate of any company. A proportion, on the other hand, refers back to the inventory certificates of a specific enterprise. Holding a selected business enterprise's percentage makes you a shareholder.
Stocks are of kinds—common and favored. The difference is even as the holder of the former has voting rights that may be exercised in corporate selections, the later does not. However, desired shareholders are legally entitled to obtain a certain level of dividend bills earlier than any dividends can be issued to different shareholders. There is likewise something called 'convertible preferred stock'. This is essentially a favored inventory with an option of changing into a set range of common shares, normally any time after a predetermined date.
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