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  1. Stock

    A stock is a share of ownership in a corporation's assets and earnings. Stock may be common or preferred. Common stock allows for voting rights, but they don't guarantee dividend payments while preferred stock does not carry voting rights, yet guarantees a set dividend payment. Preferred stock carries priority over common stock in claims for company assets if it goes bankrupt.

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Reprinted from www.pcmag.com, June 20, 2008, with permission. Copyright © 2008 Ziff Davis Media Publishing Holdings Inc. All rights reserved.