Stock
A share of ownership in a corporation, entitling the holder to a portion of the company's earnings and assets.
Also: equity · share
Definition
A stock (also called a share or equity) represents a unit of ownership in a corporation. Stockholders are entitled to a proportional share of the company's profits (dividends), assets upon liquidation, and voting rights on major corporate decisions. Stocks are traded on stock exchanges (NYSE, NASDAQ). Stock prices are determined by supply and demand, driven by factors such as earnings, growth prospects, economic conditions, and investor sentiment. Common stock carries voting rights; preferred stock typically has priority on dividends.
Example
“Buying 100 shares of Apple at $175 per share means investing $17,500 and owning a tiny fraction of Apple, entitled to dividends if declared and capital gains if the price rises.”
Usage Examples
- 1
“The team applied stock best practices to improve their investment outcomes significantly.”
- 2
“Understanding stock is essential for anyone building a career in Finance.”
When & How to Use
Use 'Stock' when working in Investment contexts where a stock (also called a share or equity) represents a unit of ownership in a corporation.
- ▸Applying stock principles during a investment project or initiative
- ▸Explaining stock to a junior team member or stakeholder unfamiliar with Finance
- ▸Evaluating options or proposals using stock as a decision-making criterion
Etymology & Origin
The term 'Stock' derives from Old English origins and entered Finance professional usage as the field formalised in the 20th century.
History & Evolution
The concept of stock has evolved alongside Finance. Early practitioners relied on informal methods; structured approaches emerged with the professionalisation of investment in the mid-20th century. Today, stock is a standard part of Finance practice globally.
Synonyms
- equity
- share
- common stock
- ownership stake
- security
Antonyms / Opposites
- bond
- debt
Images
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Related Terms
- dividend
- equity
- stock-market
- pe-ratio