Get Ownership Share

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

An entity that controls more than 50% of a company's outstanding shares is known as a majority shareholder and wields substantial power when it comes to making key decisions for the company's operations. Conversely, entities with less than 50% ownership of a company's shares are referred to as minority stockholders.

These can include: Ordinary Shares. Ordinary shares are the most common type of shares. ... Preference Shares. Preference shares confer some preferential rights on the holder, superior to ordinary shares. ... Redeemable Preference Shares. ... Convertible Preference Shares. ... Treasury Shares.

Stockholders own shares of a company, but the level of ownership may not present the benefits and responsibilities sought after. Most shareholders have no direct control over a company's operations, although some have voting rights affording some authority, such as voting for the board of directors members.

Common stockholders enjoy voting powers regarding executive decisions of a company's operations. Preferred shareholders do not enjoy voting rights over matters of the company. Dividend distribution among common stockholders is done on the basis of how a company performs in a particular year.

Similarly, shareholders own shares — also known as stocks — in a company, so the shareholders all own a little piece of the company.