People really like my bikes, but I can't keep up with demand. I need more money to expand my business.
I would love to help your business. By buying stock, I will give you the money to expand. You can give me a share of the profits later.
Jane Hughes President
As common stockholders, we make decisions for the company. We have elected a board of directors to help it run smoothly.
HUGHES' BICYCLE COMPANY
I'll give you my company's equipment if you sell me preferred stock.
Now that my company is successful, I want to expand into new markets. This skateboard company would be good for my business.
As a preferred stockholder, I can't vote on company decisions, but I will always get my dividend before the common stockholders.
HUGHES' BICYCLE & SKATEBOARD COMPANY
Any of the stock holders can sell their share to whoever they want, but in order to reach a large city, such as the New York Stock Exchange where stocks are sold at auction rather than through bargaining.