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Cost of Equity
The return a company must offer investors to compensate for the risk of investing in its stock, usually estimated using models like the Capital Asset Pricing Model (CAPM).
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, and typically pays dividends before common stock.
Common Stock
Shares of ownership in a corporation that entitle the shareholder to vote at shareholder meetings and receive dividends.
Beta
An indicator of how much a stock's price fluctuates in comparison to the general market.
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