ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies. This form of equity ownership typically yields higher rates of return long term.

Detailed explanation-2: -Common stock-also called common shares, capital shares, or capital stock-represents units of ownership in a corporation. Purchasers of common stock are granted specific rights that may include the following: Voting at stockholder meetings.

Detailed explanation-3: -A stock is a type of investment that represents an ownership share in a company. Investors buy stocks that they think will go up in value over time.

Detailed explanation-4: -Equity shares represent the ownership of a company and capital raised by the issue of such shares is known as ownership capital or owner’s funds. They are the foundation for the creation of a company. Equity shareholders are paid on the basis of earnings of the company and do not get a fixed dividend.

Detailed explanation-5: -Equity shares or ordinary shares that represent ownership stake in a company. Shares sold by a company function as a source of investment for the company as well. Also, individuals who hold equity shares are said to hold fractional ownership of a company.