What Is A Stock? – Common Investments

At FlagStone we believe that providing both our existing clients and prospective clients with accurate financial education information on your schedule, from the comfort of your home or office, that we can be a convenient financial resource that will earn your trust one answer at a time.

You can book this basics investment seminar on your schedule, based on our availability. Then, we will conduct a one on one session with you via our web conference software and walk you through the topic information at a pace that works for you, making sure that our answers are clearly understood by you. If you have any additional topic ideas, please let us know and we would be happy to accommodate your education needs.

What is a stock? – Free Seminar Sample

A type of security that signifies a percentage ownership indicated in shares of the corporation and represents a claim on part of the corporation’s assets and earnings.

There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders’ meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.

Also known as "shares" or "equity". A holder of stock (a shareholder) has a claim to a part of the corporation’s assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company’s assets.

Stocks are the foundation of nearly every portfolio. Historically, they have outperformed most other investments over the long run. (Investopedia.com)

Other stock or basic investment questions this workshop will help answer:

What is a Stock?
What is a Bond?
What is a Variable Annuity?
What is a Municipal bond?
What is an Equity?
What is a Mutual Fund?
What is an ETF?
What is a REIT?
What is an UIT?
How do Fee Accounts work?