Accounting International Marketable Securities Standard

Stocks sold by a corporation to investors are known as equity security. There are two types of equity security shares, common stock and preferred stock, according to Fundamentals of Business Organizations for Paralegals by Deborah Bouchoux. Common stock may also be referred to as ordinary stock in the United Kingdom, according to an article titled "Common Stock Definition" published on Investopedia. Each type of stock has its own advantages and disadvantages.

Voting Rights

Many times stock investors are entitled to vote on certain corporate decisions. However, common stock investors may have more voting rights than preferred stockholders, claimed Bouchoux. Usually preferred shareholders have some management power allowing influence over company policy without voting rights.

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