Full Stock

AAA

DEFINITION of 'Full Stock'

A stock with a par value of $100 per share. A full stock issue can be either a preferred share or common share. A full stock share would imply that a stock does not trade openly in public market, and thus its value is derived from its value relative to par, which in most cases would be $100. A stock's par value however is completely arbitrary and can be set at any level.

INVESTOPEDIA EXPLAINS 'Full Stock'

Stocks are generally issued with a zero par value - as they are traded in the market. The par value is not zero only when the stock is purchased directly from the company, in which case the par value is determined by the company through accounting measures. In countries where a par level is required to trade in a public market, most publicly traded shares will be given a par value of one cent, or a value very close to zero.

RELATED TERMS
  1. Par Value

    The face value of a bond. Par value for a share refers to the ...
  2. No-Par Value Stock

    Stock that is issued without the specification of a par value ...
  3. Stock

    A type of security that signifies ownership in a corporation ...
  4. Half Stock

    Stock sold with a par value half of what is considered standard. ...
  5. Par

    1. The face value of a bond. Generally $1,000 for corporate issues, ...
  6. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  3. Introduction To Investment Diversification
    Investing Basics

    Introduction To Investment Diversification

  4. Taking Stock Of Discounted Cash Flow
    Fundamental Analysis

    Taking Stock Of Discounted Cash Flow

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center