Investor Glossary-stockInvestor Glossary-stockInvestor Glossary-stockInvestor Glossary-stockInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Stock

The HTML to link to this page
 

Stock is a security issued in the form of shares that represent ownership interests in a company. There is both common stock (often simply called "stock," "shares," or "equity") and preferred stock. Common stock holders elect the company's board of directors and actively participate in the company's success (or failure) through a rising (or falling) stock price. Common stock holders may also receive dividends, provided the company is profitable, obligations to commercial creditors and bondholders have been met, and the board sees fit to declare them. In the event of liquidation, however, common stock holders have no right to assets until all other obligations of the firm have been met. Common stock holders may have "pre-emptive" rights to maintain their percentage ownership of the firm. For example, a common stock holder with 100 of the 1,000 outstanding shares of the company, or 10%, may (or may not) have the right to buy 10 shares of a new issue of 100 shares. Preferred stock holders, in turn, are generally guaranteed dividends at a fixed rate, but they have limited voting rights.



Rate this stock definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: Key Rate Duration, EBITDA, phantom income, debt service coverage, inflation, liquidity ratio, wholly-owned subsidiary, limit order, Zero Cost Collar, FTSE, LIBOR, required rate of return, covered put, 401a, class C shares, diluted share, annual return, APR, stock market close, VIX, current ratio, labor relations, 144a, ex-dividend date, 1035 exchange, cancelled check, per diem, implied volatility, real GDP, minority interest, margin rate, command economy, ex-dividend, quality assurance, irrevocable trust, risk management, in escrow, reverse mortgage, retained earnings, deferred tax, dividends payable, average price per share, option premium, balance sheet, open position, 1031 exchange, stock split, FICO score, deferred revenue


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use