stock

Definition

An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation's assets and profits. Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding. For example, if a company has 1000 shares of stock outstanding and a person owns 50 of them, then he/she owns 5% of the company. Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions. Only a certain type of company called a corporation has stock; other types of companies such as sole proprietorships and limited partnerships do not issue stock. also called equity or equity securities or corporate stock.



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Related terms:

restricted stock, security, authorized shares, share, borrowed stock, shareholder, certificate, ticker symbol, consumer stock, ESOP  and  

'stock' appears in these other terms:

auction market preferred stock, stock market crash of 1987, Stock Appreciation Rights, statutory stock option, stated rate auction preferred stock, stock consolidation, Amman Stock Exchange, convertible auction rate preferred stock, over the counter margin stock, leveraged stock and  

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