: Typically lacks voting rights but provides fixed dividends and priority over common stockholders during company liquidation. Key Risks and Considerations Chapter 19 Flashcards - Quizlet
: A "share" is the unit of stock; owning more shares increases your percentage of ownership.
: After an Initial Public Offering (IPO), shares are traded between investors on exchanges like the New York Stock Exchange (NYSE) or NASDAQ .
: Selling shares at a higher price than what was paid for them.
: Reinvesting dividends to buy more shares, potentially accelerating long-term wealth building. Primary Types of Stock
: Periodic cash payments distributed by companies to shareholders from their profits.
: Prices fluctuate based on supply and demand, which are often driven by corporate earnings expectations. How Investors Earn Money