What are Stocks

A share (also referred to as equity share) of stock means a share of ownership in a corporation (company). In the plural, stock is often used as a synonym for shares. Stock typically takes the form of shares of either Equity Share or Preference Shares. As a unit of ownership, Equity Shares typically carry voting rights that can be exercised in corporate decisions. Preference Shares differ from Equity Share 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 preference share is preferred share that includes an option for the holder to convert the preference shares into a fixed number of equity shares, usually anytime after a predetermined date.Although there is a great deal of commonality between the stocks of different companies, each new equity issue can have legal clauses attached to it that make it dynamically different from the more general cases. Some shares of common stock may be issued without the typical voting rights being included, for instance, or some shares may have special rights unique to them and issued only to certain parties. Note that not all equity shares are the same.