A stock is a form of security that indicates the holder has proportionate ownership in the issuing corporation.
| Term of the Day | Words to Know | | | | Stock | A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation's assets and profits equal to how much stock they own. Units of stock are called "shares." | Read More » | SPONSORED BY INVESCO | The Complete Guide to ETFs | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | Learn More » | | Preferred Stock | Preferred stock refers to a class of ownership that has a higher claim on assets and earnings than a common stock. | Read More » | | Earnings | Earnings typically refer to after-tax net income meaning a company's profits. Earnings are the main determinant of a company's share price. | Read More » | | Dividend | A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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