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When you buy stock, you become part owner of a company.
There are two types of stock offer:
1. Common Stock are the majority of stock sold. It comes with voting rights.
  • It offers dividend payments.
  • Vote at shareholders meetings.
  • Last in line to claiming the company's assets.

2. Preferred stock does not come with voting rights. Shareholder is entitled to:

  • Fixed dividend payments.
  • Have priority over common shareholder on company assets claim, if company goes bankrupt.

Shareholder makes money if stock increases in value.

Shareholder makes money if company pays dividends.