Get out of debt 

Financial Terms and Glossary

Definition of Stock

Back to Personal Finance Terms Home

Stock, or shares, represent ownership in a corporation. The shares or stock are claims on a corporations earnings and assets.

Stock in major public corporations is sold on major stock exchanges like the NYSE or the NASDAQ in the United States. Many countries have major stock exchanges. Public companies are subject to many laws and regulations to disclose their assets and earnings to the public. Failure to do so can result in delisting from the stock exchange or even criminal charges to the board of directors.

Many people invest in stocks. Buying and selling stocks has become fairly easy with the advent of internet stock trading.

Stock often gives the holder of shares the right to vote their shares and elect the board of directors that govern and run the corporation.

There are different types of company stock some of which include common stock, preferred stock, voting and non-voting, and convertible.

Some stocks are classified as growth stocks. This usually means that the stock's value is expected to grow, but the stock does not pay a dividend. Dividend stocks on the other hand, may not be expected to grow in value as quickly, but they often pay a dividend based on the quarter's profits.

Personal Finance Terms


Download Free Budget Tracker Software


  • Assets
  • Balance Sheet
  • Bankruptcy
  • 401k Plan
  • Bonds
  • Debt
  • Debt Consolidation
  • Interest
  • Mortgage
  • Mutual Funds
  • Retirement Plan
  • Stock

    Other Info

    Organize Your Life

    Organizer Software

    Free Finance Shareware Software


  • This site is Copyright TSI 2004-2012, All Rights Reserved Terms of Use and Privacy Policy