Stock

Definition

• A security that represents equity (ownership) in a corporation. Owning stock gives each shareholder a claim on a portion of a corporation's assets and earnings and often times provides shareholders voting rights. Many stocks are traded openly on stock exchanges between investors. Also known as "equity" or a "share."

Synonyms
stocks, share

Alternate Spellings
share, equity

Related Terms and Acronyms

• Bear Market — Definition,
  • When stock prices are decreasing, it's a bear market.
• Bond — Definition,
  • A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
• Bull Market — Definition,
  • When stock prices are increasing and it's a healthy market, this is known as a bull market.
• Buyer's Market — Definition,
  • When market conditions favour the buyer.
• Canadian National Stock Exchange (CNSX) — Company, Toronto, Ontario, Canada, Important,
  ➥ Canadian stock exchange for trading the securities of public companies.
• Closed-end Fund — Definition,
  • A mutual fund with shares initially sold to investors through an IPO; afterwards, the fund is listed on a stock exchange to be bought and sold.
• Common Stock (CS) — Acronym,
  • A security that allocates partial ownership in a corporation, but at a lower standing than preferred stocks.
• Corporation — Definition,
  • A legal entity that is legally separate from its owners and employees.
• Equity — Definition,
  • Ownership in an asset.
  • The value of a property minus outstanding mortgage debt and other liens.
• Financing Expenses — Definition,
  • Expenses sustained from interest payments, financing, and dividends to shareholders.
• Incorporated Business — Definition,
  • A company that exists as a corporation.
• Index — Definition,
  • A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes.
• Indexed Annuity — Definition,
  • An annuity where investment performance is pegged to a stock index.
• Inflation-Protected Annuity — Definition,
  • An annuity that guarantees a return equal to or above inflation.
• Initial Public Offering (IPO) — Acronym,
  • When shares of a corporation become available to the public for the first time.
• Investment — Definition,
  • Something you put your money into in order to make money.
• Investments in Affiliates — Definition,
  • A situation where an investor has a great deal of control over the operation and/or financial management of his or her investment.
• Issuer — Definition,
  • A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
• Mutual Fund — Definition,
  • A type of investment scheme that pools funds from multiple backers and invests them in securities such as stock or bonds.
• Portfolio — Definition,
  • A collection of investments.
• Preferred Stock — Definition,
  • A type of security that signifies part ownership in a corporation and is given preferential treatment over common stocks.
• Private Equity — Definition,
  • Equity not traded on a stock exchange.
• Privately Held Company — Definition,
  • A company that is not listed on a stock exchange.
• Publicly Traded Company — Definition,
  • A company that is sold on a stock exchange.
• Return on Equity (ROE) — Acronym,
  • A ratio that shows how profitable a company is when compared to shareholder equity.
• Secondary Market — Definition,
  • A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
• Securities/Investment Dealer — Definition,
  • One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.
• Security — Definition,
  • Property designated as collateral.
  • A document stating ownership of a stock or bond.
  • A tradable financial implement that represents ownership, the rights to ownership or debt.
• Seed Funding — Definition,
  • Money used to start a business.
• Segregated Fund — Definition,
  • Investment vehicles that feature both maturity and death guarantees. Segregated funds share similarities with mutual funds but are categorized as insurance products.
• Seller's Market — Definition,
  • Due to either low supply or high demand, the seller can expect to sell quickly with a high sale price.
• Share Certificate — Definition,
  • A certificate of deposit issued by a credit union that pays a specific dividend if held for a specific period. It's the credit union equivalent of a certificate of deposit. A penalty is usually assessed if all or any of the principal is withdrawn before maturity.
• Startup Company — Definition,
  • A recently founded company that works on new products and services.
• Stock Insurance Company — Definition,
  • An insurance company with multiple stockholders each owning shares in the corporation.
• Swap — Definition,
  • An agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate. For example, interest rate swaps, where floating rate interest is exchanged for fixed rate interest, protects a corporation against rises in rates or allows it to take advantage of a better rate. A cross-currency swap enables two parties to enter into an agreement in which one exchanges its currency for the other's to meet their separate requirements.