Stocks may pay dividends.
Explanation:
A stock is a generic term to describe any company's own documents. On the other hand, a stake applies to a specific company's stock certification. You become an investor by owning a certain company.
All stocks are popular and favored. The distinction is that the owner of the former is entitled to vote that can be practiced in business decisions, not the latter. Nevertheless, preferential investors have the legal right, until dividends can be given to other shareholders, to obtain a certain number of dividend payments.
It is also termed a 'preferred convertible stock'. It is a preferred share, typically at a specified time, with such an option to turn into the set number of specific shares.