Stock, which is issued in the form of shares, is a certification of the ownership of a company. It is a type of security, “a legal representation of the right to receive prospective future benefits under stated conditions” . A share of stock represents a unit of ownership. There are two classes of stock: the common stock and the preferred stock. Majority of the stock issued is usually referred to as the common stock. It is a residual claim but with voting rights. The holders of the preferred stock have a fixed or predetermined dividend and a superior priority over the common stockholders on the payment of dividend in the event of liquidation, but they usually do not have voting rights.
KeywordsSupport Vector Machine Stock Market Stock Price Internal Model Stock Prex
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