This is one name for the equity and everyone must be aware of the same. Of course the common stock, equity stock and common equity are all but the same.

Cash flow rights: This is the least prioritized thing. Of course if there is nothing left after paying the bonds then the shareholders will have to suffer. This is absolutely when it is a bankruptcy of course.

Control rights: Unfortunately the shareholders cannot force a firm to go for a bankruptcy. Though they can always choose a corporate board. Now this board will be responsible for appointing the managers who will take care of the shareholders’ rights as well.

There are various types of equities that various firms practice without doubt. The shareholders are equal to the corporate owners in many situations.  But then again they have only limited power.

There are few equities that do not exist anymore.

Preferred equity: It is a hybrid of the bonds and the equities. In case of a bankruptcy thus it even demands for a compensation. These are way higher than the common dividends of course.

This had variances as well. Some of these had no specified maturity time. While some of these had the same.

Warrants and options: This permits the owner to buy a particular stock in a price that has been set beforehand. These have great values only if the firms had good time.

Equity (Stock) 11


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