As the owner of the shares, you hold the right to vote during the shareholders' meeting. When the company distributes its profits, you will also get paid like every other share holder depending on the number of shares you hold.

There are two kinds of stocks. One is the common stock, and the other is the preferred stock. The stock held by the individuals is called the commons tock. The majority of the stock held by the public can also be called commons stock. People who own common stocks have the right to profit sharing of the company and also right to dividends. Whenever you read about the increasing or falling prices of the shares, then it is the common stock that they are referring to.

Preferred stocks have more rights than common stocks. When a company divides the dividends, the first preference goes to preferred stock holder. Preferred stock holders receive consistent dividends. Most investors who buy preferred stocks do so to receive a consistent income in the form of dividends. Companies that are making big profits are the best to buy preferred stocks from.

Liquidity is a term used while selling the shares. When you sell the shares, it means that you are liquidizing them.

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