Stock
 |
Definition of 'Stock'A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated. Also known as "shares" or "equity." |
 |
Investopedia explains 'Stock'A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a 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 one person owns 100 shares, that person would own and have claim to 10% of the company's assets.Stocks are the foundation of nearly every portfolio. Historically, they have outperformed most other investments over the long run. |
Related Definitions
Articles Of Interest
-
A Look At Primary And Secondary Markets
Knowing how the primary and secondary markets work is key to understanding how stocks trade. -
Old Stock Certificates: Lost Treasure Or Wallpaper?
What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth. -
How To Invest When You're Deep In Debt
Debt is one of the biggest obstacles that prevents people from investing - but it shouldn't be. -
The 5 Biggest Stock Market Myths
Stocks that go down must come up, right? Wrong. We bust this myth and four other common market misconceptions. -
Bursting Boomers' Inheritance Dreams
Waiting for a big payload from an aging relative? The chance of cashing in is lower than you think. -
What Owning A Stock Actually Means
Think owning a stock gives you special privileges with the company? Think again. -
The Art Of Selling A Losing Position
Knowing whether to sell or to hold is tough. And no rule fits all. Find out what to consider. -
What is the doctor advisory scam?
U.S. securities law provides certain exemptions that allow privately owned companies to issue shares of unregistered stock to select, qualified investors. In the "doctor advisory scam", an unregistered ... -
Five Investing Pitfalls To Avoid, According to Investor's Business Daily
Common sense or common folly? Discover some approaches to circumventing typical stumbling blocks on the road to profitable investing. -
The Birth Of Stock Exchanges
Learn how British coffeehouses helped give rise to the juggernaut that is the NYSE.
Free Annual Reports