
Stock
A stock is an ownership interest in a company. It can take the form of common stock or preferred stock. Common stock represents ownership equity in a company and gives its holders the right to receive dividends and to vote in shareholder meetings. Preferred stock typically does not give voting rights but does provide a higher dividend rate than common stock.
The first company to sell stocks is believed to be the Dutch East India Company, which was established in 1602 and offered shares to the public on the Amsterdam Stock Exchange in order to finance its operations.
The Dutch East India Company was a multinational corporation with a monopoly on Dutch spice trade and an extensive shipping network. The success of the Dutch East India Company and the sale of its shares on the stock market helped establish the concept of a joint-stock company and paved the way for the development of the modern stock market.
The terms "stock" and "share" are often used interchangeably, but there is a slight difference in their meanings. A share is a unit of ownership in a company, while a stock is a collection of shares in a company that are traded on a stock exchange. However, the terms are often used interchangeably in casual conversation.