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Bondholders own a share of the debt of a company. Stockholders own a share of the equity of a company.
Risk of being a stockholder: Stockholders can lose their money if the company goes bankrupt. Benefit of being a stockholder: Stockholders share in the company's profits. Power of a stockholder: Stockholders can vote for the members of the board of director
You may vote for members of board of directors & you receive a share of profits if the company does well
Preferred stockholders have a greater claim on the assets and profits of a company compared to common stockholders. If a company is liquidated, preferred stockholders have to be paid first before the common stockholders.
dividends
The stockholder's share of a company's profits are called dividends.
The stockholder's share of a company's profits are called dividends.
Paid dividends
Bondholders own a share of the debt of a company. Stockholders own a share of the equity of a company.
Risk of being a stockholder: Stockholders can lose their money if the company goes bankrupt. Benefit of being a stockholder: Stockholders share in the company's profits. Power of a stockholder: Stockholders can vote for the members of the board of director
You may vote for members of board of directors & you receive a share of profits if the company does well
You may vote for members of board of directors & you receive a share of profits if the company does well
Preferred stockholders have a greater claim on the assets and profits of a company compared to common stockholders. If a company is liquidated, preferred stockholders have to be paid first before the common stockholders.
That is called "dividends".
dividends
Stockholders can sell their shares in the company at any time
A dividend is a stockhder's share of the profits from the company. This is paid pro-rata to the stockholders in either cash or more shares.