: Reinvesting dividends to buy more shares, potentially accelerating long-term wealth building. Primary Types of Stock

: Periodic cash payments distributed by companies to shareholders from their profits.

: Selling shares at a higher price than what was paid for them.

: After an Initial Public Offering (IPO), shares are traded between investors on exchanges like the New York Stock Exchange (NYSE) or NASDAQ .

: The most frequent type; usually includes voting rights on corporate matters and potential for high long-term growth.

: Typically lacks voting rights but provides fixed dividends and priority over common stockholders during company liquidation. Key Risks and Considerations Chapter 19 Flashcards - Quizlet

: Companies issue stock to raise money for expansion or operations without taking on debt.