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Describe a binary system.
Preferred Stock
A class of ownership in a corporation with a specified dividend that is paid before any dividends are paid to common stock holders and typically with no voting rights.
Common Stock
Type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.
Dividends
Disbursements issued by a company to its shareholders, representing a share of the company's earnings distributed to its stockholders.
Cash Dividend
A cash dividend refers to the distribution of a portion of a company's profits to its shareholders as cash.
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