What is a Stock?

Victors: Conquerors of the Bulls and Bears

by Edwin | July 9th, 2014 | 1 comment

 

Definition of 'Stock'

A stock is a 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

Comments

Article: Evaluating a Company’s Health and Worth: A company that has a small budget but no debt

Leave a comment...

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

More information about formatting options