Question

List the various kinds of stock and describe the differences between them.

Answer 1

Stocks are categorized in two main categories:-

1. Common stock

2. Preferred stock

Common stock	Preferred stock
These are further divided into Blue Chip stocks, Income Stock, Growth stock, Defensive stock, Emerging stock, Cyclical Stock.	These are further divided into Cumulative, Participating, Convertible, Callable and Adjustable-rate.
They have voting rights in the general meeting.	They don't have voting rights in the general meeting.
They get dividend at the end.	They get their share of profit before common stockholders.
Rate of dividend is lower than preferred stock.	The rate of dividend is higher than common stock.
In liquidation, they have the least amount of claim.	In liquidation, their claim is higher than common stock.

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