Stock

Stock is an equity security, fixing its holder (shareholder) rights for receiving dividends, participation in joint-stock company management and for receiving part of the equities, left after company's liquidations.

There are several types of stock:

Common shares give the right in joint-stock company management (1 share is equal to 1 voice at the shareholder meeting, except for cumulative voting) and participates in company's profit distribution. The source of dividends is a company's net income. Dividends size is fixed by the company's board of directors and recommended to the shareholder meeting, which can only reduce dividend's size.

Preference stock does not carry voting rights but is entitled to receive a certain level of dividend payments. Preference stock dividends can be paid from the company's income and from other sources - according to articles of association.

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 anytime after a predetermined date. Shares of such stock are called "convertible preferred shares".

Founders share is a share spread between founder members and giving some priorities. Founders share holders can have extra quantity of votes at the shareholders meeting, have the prior right for receiving shares in case of its farther issue, and play the main role in solution of the questions concerning joint - stock company activity.

Listing.

A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, where investors (represented by stock brokers) may buy and sell shares of a wide range of companies. A company must list its shares by meeting and maintaining the listing requirements of a particular stock exchange.