Stock
Companies issue and distribute stock for the purpose of raising capital. In the United States these shares are called "stock." The total number of shares issued by a company is called the company's market capitalization. The interests of a company's stockholders are safeguarded by a board of directors that works in cooperation with the company's managers. The shareholders themselves elect the board, with a given shareholder's voting rights being commensurate with the number of shares they hold in the company. Consequently, it is the major stock holders that routinely exercise their voting rights.

Stocks are classified as either common or preferred. Common stock holders receive dividends and have voting rights. Preferred stock holders receive preferential treatment in the distribution of dividends but they do not have voting rights.

The purchase and sale of stocks on behalf of individual investors is normally carried out by a financial professional known as a stockbroker although the Interne t has now made it possible for investors to trade on their own behalf.

More Glossary Terms Explained here