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Stock |
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Stock Ownership of a corporation indicated by shares, which represent a piece of the corporation's assets and earnings.
Stock A portion of ownership in a corporation. The holder of a stock is entitled to the company's earnings and is responsible for its risk for the portion of the company that each stock represents. There are two main classes of stock: common stock and preferred stock. Common stock holders have the right to vote on major company decisions, such as whether or not to merge with another corporation, and receive dividends determined by management. Preferred stock holders do not usually have voting rights, but receive a minimum dividend. Stock may be bought or sold, usually, though not always, in the context of a securities exchange. It is important to note that a single share of a stock usually represents only a tiny amount of ownership, and, therefore, most stocks are traded in batches of 100. Stock. Stock is an equity investment that represents part ownership in a corporation and entitles you to part of that corporation's earnings and assets. Common stock gives shareholders voting rights but no guarantee of dividend payments. Preferred stock provides no voting rights but usually guarantees a dividend payment. In the past, shareholders received a paper stock certificate -- called a security -- verifying the number of shares they owned. Today, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm. Stock What Does Stock Mean? A security that represents ownership in a corporation and has claims on part of the corporation's assets and earnings per share. There are two main types of stock: (1) common and (2) preferred. (1) Common stock usually entitles the owner to vote at shareholders' meetings and receive dividends when applicable. (2) Preferred stock generally does not include voting rights but has a priority claim on assets and earnings ahead of common shares. For example, owners of preferred stock receive dividends before common shareholders do and are in the front of the line if a company goes bankrupt and is liquidated. Also known as shares or equity. Investopedia explains Stock A stockholder (a shareholder) has a claim to part of the corporation's assets and earnings. In other words, a shareholder is an owner of the company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and an investor owns 100 shares, that investor owns and has a claim to 10% of the company's assets. Stocks are a major component of investor portfolios because historically they outperform most other investments over the long run. Related Terms: How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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