- A business that has been declared as a separate entity from its owners, which shields investors from liability, lowers taxes, and provides an easy method of raising capital or transferring ownership through the sale of stock.
Related Terms and Acronyms
- Business (busn) — Abbreviation,
- A company, either for-profit or non-profit.
- Commercial, industrial or professional activities undertaken by an entity.
- Economic activities of a given type.
- Commercial Mortgage — Definition, Very Important,
- A mortgage for commercial property.
- 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.
- Initial Public Offering (IPO) — Acronym,
- When shares of a corporation become available to the public for the first time.
- Preferred Stock — Definition,
- A type of security that signifies part ownership in a corporation and is given preferential treatment over common stocks.
- 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.
- Revenue — Definition,
- Money earned by a company from its business activities.
- Secondary Market — Definition,
- A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
- Sole Proprietorship — Definition,
- A business owned by an individual where no legal distinction is made between the business and the owner.
- Stock — Definition,
- A share of the ownership of a company.