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Ownership of one or more companies is called stocks. If you buy some part of shares or a share in one or more companies and can be a part-owner of that company. For example, if a company has 2,000 shares of  stock  outstanding. And one person owns 200 shares. That person would own and have a claim to 20% of the company’s  assets  and earnings. The stock is the larger form of the share. “stocks” is the more general term and used to describe a slice of  ownership  of one or more  companies . If, a person said he purchased 50 stocks. It means he would refer to 50 different companies from which he bought shares. However, there are two types of stocks 1.Common Stock:  Common stocks   are shares of ownership of a corporation. They allow you to own a portion of the company without taking possession. 2.Preferred Stock:  Preferred stocks refer to the dividends paid by the corporation. Each year, the holders of the preferred stock are to receive t...

  Types of Shares: There are two types of shares. They are 1. Equity Shares 2. Preference Shares Equity shares We also know  equity shares  as ordinary shares. These shares have voting rights. Equity share is a main source of finance for any company giving investors the right to vote,  share market  profits, and claim on assets. Features of equity shares 1. They are permanent. 2.  Equity shareholders  are the actual owners of the company and they bear the highest risk. 3.  Equity shares   are transferable. i.e. ownership of equity shares can be transferred with or without consideration to other people. 4. Dividend payable to equity shareholders is an appropriation of profit 5. Equity shareholders do not get a fixed rate of dividends. 6. They limit the liability of equity shareholders to the extent of their investment. Advantages of Equity Shares 1. Equity shares do not create any obligation to pay a fixed rate of dividends. 2. Equity shares c...