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. Full Stock

    A stock with a par value of $100 per share. A full stock issue ...
  2. At Par

    At par is a term that refers to a bond, preferred stock or other ...
  3. Below Par

    Below par is a term describing a bond whose market price is below ...
  4. Face Value

    Face value is the nominal value or dollar value of a security ...
  5. Stated Value

    A stated value is an amount assigned to a corporation's stock ...
  6. At A Discount

    If shares are sold for less than their par value, they are sold ...
Related Articles
  1. Investing

    Preferred Stocks versus Bonds: How to Choose

    What is the difference between corporate bonds and preferred stock? A list of pros and cons for each investment.
  2. Managing Wealth

    What You Need To Know About Preferred Stock

    Curious about preferred shares? Here's what you should know about these bond-like instruments.
  3. Financial Advisor

    What Is The Difference Between Preferred Stock And Common Stock?

    Most investors are familiar with common stock, but many know little about another form of company ownership: preferred stock.
  4. Investing

    Prefer Dividends? Why Not Look At Preferred Stock?

    Preferred stock is an under-used option for income-seeking investors.
  5. Investing

    PFF vs. PGX: Which Preferred Stock ETF is Better?

    Get a review and analysis of the two most popular preferred stock ETFs for investors looking for yield to consider adding to their portfolio.
  6. Financial Advisor

    Advising FAs: How To Explaining Stocks to a Client

    Without a doubt, common stocks are one of the greatest tools ever invented for building wealth.
  7. Investing

    Debt Buybacks Continue

    Many companies are buying bonds back at a discount, and adjusting capital structures to more acceptable levels.
  8. Investing

    Preferred Stock ETFs With Huge Dividends

    If you prefer huge dividend yields, you might want to consider having a preferred stock ETF in your portfolio.
  1. The difference between par and no par value stock

    Understand the difference between par and no par value stock and how this differentiation affects corporate liabilities and ... Read Answer >>
  2. What is the difference between par value and market value?

    Learn about the difference between the par value and market value of financial securities, including the role they play in ... Read Answer >>
  3. What is the difference between par value and face value?

    Learn about the par value and face value of securities as well as what these synonymous terms mean about the value and purchase ... Read Answer >>
  4. What is the difference between redemption of shares and repurchase of shares?

    Sometimes, shares of stock offered by a company are not regular, market-driven common shares. Instead, they may be preferred ... Read Answer >>
  5. Will the price of a premium bond be higher or lower than its par value?

    Find out why the selling price of a premium bond is always higher than its par value, including how changing interest rates ... Read Answer >>
Hot Definitions
  1. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  2. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  3. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
  4. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  5. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  6. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
Trading Center