• 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."

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.
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