ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Equity: The ownership interest in a company of holders of its common and preferred stock.

Detailed explanation-2: -Common stock is an ownership share in a corporation that allows its holders voting rights at shareholder meetings and the opportunity to receive dividends.

Detailed explanation-3: -Stock represents a share of ownership in a corporation. A bond is a security that represents a debt owed by the corporation to the bondholder, but does not include the ownership privileges of a stockholder.

Detailed explanation-4: -Common shareholders are those that own a company’s common stock. They are the more prevalent type of stockholders and they have the right to vote on matters concerning the company.

Detailed explanation-5: -“Common shares” is the legal term that typically refers to the corporation’s class of shares that holds the minimum rights described above (right to vote, right to receive dividends, right to residual value of the corporation’s assets upon the corporation’s liquidation).