Half Stock


DEFINITION of 'Half Stock'

Stock sold with a par value half of what is considered standard. Half stock can be either common or preferred and, other than the reduced par value, acts as a regular share of stock. The par value of a typical share of stock is $100, meaning that half stock has a par value of $50.


The valuation of a share of common stock is typically the same for both a regular share of stock and half stock, since much of the stock's value is related to growth potential. Par value is an important factor in determining the dividend of a share of stock, making it more important for preferred stock. Additionally, preferred stock may have a higher claim on the proceeds of a company being liquidated, typically equivalent to its par value. This means that a half stock share of preferred stock would potentially receive less in liquidation.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Par Value

    The face value of a bond. Par value for a share refers to the ...
  3. Full Stock

    A stock with a par value of $100 per share. A full stock issue ...
  4. Common Stock

    A security that represents ownership in a corporation. Holders ...
  5. Security

    A financial instrument that represents an ownership position ...
  6. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating ...
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