Buyback of Invested Shares

Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares. Physical paper stock certificates have been replaced with electronic recording of stock shares just as mutual fund shares are recorded electronically. Most companies issue common stock. The stock may benefit shareholders through appreciation and dividends making common stock riskier than preferred Stock. Common stock also comes with voting rights giving shareholders more control over the business. In addition certain common stock comes with pre-emptive rights ensuring that shareholders may buy new shares and retain their percentage of ownership when the corporation issues new stock.