These days, it seems just about everyone knows what a stocks is, not to mention having a few favorites they watch. When you buy stock in a company that is publicly traded, you are purchasing ownership shares in that business. As a stockholder, you share the value and the risk of that company. Common stock is sold initially by a corporation and then traded among investors.
Common stockholders have voting rights.
Preferred stock generally carries no voting rights. The exchanges do not actually purchase or sell the securities. Specialists match buy and sell orders. In contrast to the NYSE, all trades on the Nasdaq are done electronically. Stock exchanges act as auction houses.