If you are a shareholder of a company, it means that you own a certain percentage of the company and have certain rights such as attending annual meetings and casting votes.
Essentially, when a person purchases shares in a company for a set price, they hope that the company will gain value overtime and thus lead to a financial gain for the shareholder.
There are two types of shares: common and preferred. The difference between the two are:
Common shares refer to most of the shares that get bought and sold that can have varying dividends over time.
Preferred stock refers to equity interests that are paid out a set amount over a period of time.
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