Stock - Types of Stock

Types of Stock

Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually any time after a predetermined date. Shares of such stock are called "convertible preferred shares" (or "convertible preference shares" in the Uk)

New equity issue may have specific legal clauses attached that differentiate them from previous issues of the issuer. Some shares of common stock may be issued without the typical voting rights, for instance, or some shares may have special rights unique to them and issued only to certain parties. Often, new issues that have not been registered with a securities governing body may be restricted from resale for certain periods of time.

Preferred stock may be hybrid by having the qualities of bonds of fixed returns and common stock voting rights. They also have preference in the payment of dividends over common stock and also have been given preference at the time of liquidation over common stock. They have other features of accumulation in dividend. In addition, preferred stock usually comes with a letter designation at the end of the security; for example, Berkshire-Hathaway Class "B" shares sell under stock ticker BRK.B, whereas Class "A" shares of ORION DHC, Inc will sell under ticker OODHA until the company drops the "A" creating ticker OODH for its "Common" shares only designation. This extra letter does not mean that any exclusive rights exist for the shareholders but it does let investors know that the shares are considered for such, however, these rights or privileges may change based on the decisions made by the underlying company.

Read more about this topic:  Stock

Other articles related to "types, type, types of":

Small Boat Anchors - Bruce or Claw Anchor
... Claw-types set quickly in most seabeds and although not an articulated design, they have the reputation of not breaking out with tide or wind changes ... Claw types have difficulty penetrating weedy bottoms and grass ... ratio and generally have to be oversized to compete with other types ...
Prolog - Extensions - Types
... Attempts to introduce types date back to the 1980s, and as of 2008 there are still attempts to extend Prolog with types ... Type information is useful not only for type safety but also for reasoning about Prolog programs ...
Types of Graphemes
... The principal types of graphemes are logograms, which represent words or morphemes (for example, Chinese characters, or the ampersand representing the ... For a full discussion of the different types, see Writing system Functional classification of writing systems ...
Netwar - Network Structures
... Arquilla and Ronfeldt point to three basic types of networks that may be used by netwar actors Chain network – typified by smuggling networks, where end-to-end ... on hybrid forms as well, blending different types of networks and hierarchies ... to each other through different types of network structures ...

Famous quotes containing the words types of, stock and/or types:

    Our children evaluate themselves based on the opinions we have of them. When we use harsh words, biting comments, and a sarcastic tone of voice, we plant the seeds of self-doubt in their developing minds.... Children who receive a steady diet of these types of messages end up feeling powerless, inadequate, and unimportant. They start to believe that they are bad, and that they can never do enough.
    Stephanie Martson (20th century)

    The freedom to make a fortune on the Stock Exchange has been made to sound more alluring than freedom of speech.
    John Mortimer (b. 1923)

    Science is intimately integrated with the whole social structure and cultural tradition. They mutually support one other—only in certain types of society can science flourish, and conversely without a continuous and healthy development and application of science such a society cannot function properly.
    Talcott Parsons (1902–1979)