Stock: Stock is an equity investment that represents part ownership in a corporation and entitles you to part of that corporation's earnings and assets. Common stock gives shareholders voting rights but no guarantee of dividend payments. Preferred stock provides no voting rights but usually guarantees a dividend payment. In the past, shareholders received a paper stock certificate — called a security — verifying the number of shares they owned. Today, share ownership is usually recorded electronically, and the shares are held in street name by your brokerage firm.

 

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Stock: Stock is an equity investment that represents part ownership in a corporation and entitles you to part of that corporation's earnings and assets. Common stock gives shareholders voting right . . . View Full Definition

Preferred Equity Redemption Stock (PERC): Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives.

Stock Certificate: A stock certificate is a paper document that represents ownership in a corporation. In the past, when you bought stock, you got a certificate that listed your name as owner, and showed the n . . . View Full Definition

Large-Capitalization (Large-Cap) Stock: The stock of companies with market capitalizations of $10 billion or more is known as large-cap stock. Market capitalization is figured by multiplying the number of either the outstanding or . . . View Full Definition