Stocks represent ownership of their holders in the issuing company. Stocks may be common stocks or preferred stocks. Preferred stockholders earn a fixed amount of dividends whose payment takes priority over that of ordinary share dividends. While common stockholders do not get a fixed amount of dividends, they do get voting rights in company matters.Stocks are also known as equities.
Trivia: The Dutch East India Company was the first company to offer equity shares of its business to the public
