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What happens to a raindrop if it gets too large?
Common Stock
A type of equity security that represents ownership in a corporation, carrying voting rights and potentially dividends.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends and without voting rights.
Stock Split
An action by a company to divide its existing shares into multiple new shares to boost the liquidity of the shares, though the overall value of one’s investment remains the same.
Stock Dividend
A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.
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