Common Stocks.
Common stocks represent a degree of ownership in the
corporation. They may vote on questions affecting the corporation in
proportion to the number of shares held. Common shareholders have rights
to elect the directors of the corporation. However, some common stocks
have limited voting rights, or no voting rights at all.
No matter which type of common shares is owned, the investor may
still profit from an increase in stock prices or through dividends. Most
stock traders are based on the expectation that the purchased stock will
rise in price, and the investor's profit will be the difference between
price paid and price sold.
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