Question
What are common stocks?
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2nd Nov 2009 by Mark P. Cussen, CFP, CMFC
Common stock is the lowest level of stock issued by a corporation. It is subordinate to preferred stock, which usually pays a steady dividend but remains relatively constant in price. Common stock usually carries voting rights, and it may also pay dividends. However, common stock also usually provides capital gains over time, but shareholders are the last to get reimbursed in the event that the corporation goes bankrupt.
Common stock is the lowest level of stock issued by a corporation. It is subordinate to preferred stock, which usually pays a steady dividend but remains relatively constant in price. Common stock usually carries voting rights, and it may also pay dividends. However, common stock also usually provides capital gains over time, but shareholders are the last to get reimbursed in the event that the corporation goes bankrupt.
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19th Oct 2009 In Stocks
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