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Dictionary:

stock

  (stŏk) pronunciation
n.
  1. A supply accumulated for future use; a store.
  2. The total merchandise kept on hand by a merchant, commercial establishment, warehouse, or manufacturer.
  3. All the animals kept or raised on a farm; livestock.
    1. The capital or fund that a corporation raises through the sale of shares entitling the stockholder to dividends and to other rights of ownership, such as voting rights.
    2. The number of shares that each stockholder possesses.
    3. A stock certificate.
    4. The part of a tally or record of account formerly given to a creditor.
    5. A debt symbolized by a tally.
  5. The trunk or main stem of a tree or another plant.
    1. A plant or stem onto which a graft is made.
    2. A plant or tree from which cuttings and slips are taken.
    1. The original progenitor of a family line.
    2. The descendants of a common ancestor; a family line, especially of a specified character: comes from farming stock.
    3. Ancestry or lineage; antecedents.
    4. The type from which a group of animals or plants has descended.
    5. A race, family, or other related group of animals or plants.
    6. An ethnic group or other major division of the human race.
    7. A group of related languages.
    8. A group of related families of languages.
  8. The raw material out of which something is made.
  9. The broth in which meat, fish, bones, or vegetables are simmered for a relatively long period, used as a base in preparing soup, gravy, or sauces.
    1. A main upright part, especially a supporting structure or block.
    2. stocks Nautical. The timber frame that supports a ship during construction.
    3. A frame in which a horse or other animal is held for shoeing or for veterinary treatment. Often used in the plural.
  11. stocks A device consisting of a heavy timber frame with holes for confining the ankles and sometimes the wrists, formerly used for punishment.
  12. Nautical. A crosspiece at the end of the shank of an anchor.
  13. The wooden block from which a bell is suspended.
    1. The rear wooden, metal, or plastic handle or support of a rifle, pistol, or automatic weapon, to which the barrel and mechanism are attached.
    2. The long supporting structure and mooring beam of field-gun carriages that trails along the ground to provide stability and support.
  15. A handle, such as that of a whip, a fishing rod, or various carpentry tools.
  16. The frame of a plow, to which the share, handles, coulter, and other parts are fastened.
    1. A theatrical stock company.
    2. The repertoire of such a company.
    3. A theater or theatrical activity, especially outside of a main theatrical center: a small role in summer stock.
  18. Botany. Any of several Eurasian and Mediterranean plants of the genus Matthiola in the mustard family, especially M. incana, widely cultivated for its clusters of showy, variously colored flowers.
  19. Games. The portion of a pack of cards or of a group of dominoes that is not dealt out but is drawn from during a game.
  20. Geology. A body of intrusive igneous rock of which less than 100 square kilometers (40 square miles) is exposed.
  21. Zoology. A compound organism, such as a colony of zooids.
    1. Personal reputation or status: a teacher whose stock with the students is rising.
    2. Confidence or credence: I put no stock in that statement.
    1. A long white neckcloth worn as part of a formal riding habit.
    2. A broad scarf worn around the neck, especially by certain clerics.
  24. Rolling stock.

v., stocked, stock·ing, stocks.

v.tr.
  1. To provide or furnish with a stock of something, especially:
    1. To supply (a shop) with merchandise.
    2. To supply (a farm) with livestock.
    3. To fill (a stream, for example) with fish.
  2. To keep for future sale or use.
  3. To provide (a rifle, for example) with a stock.
  4. Obsolete. To put (someone) in the stocks as a punishment.
v.intr.
  1. To gather and lay in a supply of something: stock up on canned goods.
  2. To put forth or sprout new shoots. Used of a plant.
adj.
  1. Kept regularly in stock: a stock item.
  2. Repeated regularly without any thought or originality; routine: a stock answer.
  3. Employed in dealing with or caring for stock or merchandise: a stock clerk.
    1. Of or relating to the raising of livestock: stock farming.
    2. Used for breeding: a stock mare.
    1. Of or relating to a stock company or its repertoire.
    2. Of or being a conventional character or situation that recurs in many literary or cinematic works.
idioms:

in stock

  1. Available for sale or use; on hand.
out of stock
  1. Not available for sale or use.

[Middle English stok, from Old English stocc, tree trunk.]

stockage stock'age n.
stocker stock'er n.
 
 
Investment Dictionary: Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders' meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.

Also known as "shares" or "equity".

Investopedia Says:
A holder of stock (a shareholder) has a claim to a part of the corporation's assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets.

Stocks are the foundation of nearly every portfolio. Historically, they have outperformed most other investments over the long run.

Related Links:
If you're new to the stock market and want the basics, this is the tutorial for you! Stock Basics Tutorial
Stocks that go down must come up, right? Wrong. We bust this and four other common market misconceptions. The Five Biggest Stock Market Myths
With the purchase of a stock you get ownership, but do you get special privileges with the company? What Owning A Stock Actually Means
Common sense or common folly? Discover some approaches to circumventing typical stumbling blocks on the road to profitable investing. Five Investing Pitfalls To Avoid, According to Investor's Business Daily
Knowing how the primary and secondary markets work is key to understanding how stocks trade. Markets Demystified
Knowing whether to sell or to hold is tough. And no rule fits all. Find out what to consider. The Art Of Selling A Losing Position
Judging from the number of questions we've received on this issue, the turning up of old stock certificates is a more common phenomenon than you might think. Old Stock Certificates: Lost Treasure or Wallpaper?


 
Financial & Investment Dictionary: Stock

1. -ownership of a Corporation represented by shares that are a claim on the corporation's earnings and assets. Common Stock usually entitles the shareholder to vote in the election of directors and other matters taken up at shareholder meetings or by proxy. Preferred Stock generally does not confer voting rights but it has a prior claim on assets and earnings-dividends must be paid on preferred stock before any can be paid on common stock. A corporation can authorize additional classes of stock, each with its own set of contractual rights. See also Articles of Incorporation; Authorized Shares; Blue Chip; Book Value; Capital Stock; Certificate; Class; Classified Stock; Closely Held; Common Stock; Common Stock Equivalent; Convertibles; Control Stock; Corporation; Cumulative Preferred; Dividend; Earnings Per Share; Equity; Float; Fractional Shares; Going Public; Growth Stock; Inactive Stock; Initial Public Offering; Issued and Outstanding; Joint Stock Company; Letter Security; Listed Security; Market Value; Nonvoting Stock; No-Par Value Stock; Over the Counter; Par Value; Participating Preferred; Penny Stock; Preemptive Right; Preference Shares; Preferred Stock; Prior Preferred Stock; Quarter Stock; Registered Security; Registrar; Reverse Split; Scrip; Security; Share; Shareholder; Split; Stated Value; Stock Certificate; Stock Dividend; Stock Exchange; Stockholder; Stockholder of Record; Stock Market; Stock Power; Stock Purchase Plan; Stock Symbol; Stock Watcher; Transfer Agent; Treasury Stock; Voting Stock; Voting Trust Certificate; Watered Stock.

2. -inventories of accumulated goods in manufacturing and retailing businesses.

3. see Rolling Stock.

 
Marketing Dictionary: stock

1. Various grades or types of paper used for printing, with different basis weights and finishes.

2. Material in inventory, such as preprinted forms and envelopes in a lettershop inventory, or store merchandise.

 
Thesaurus: stock

noun

  1. A supply stored or hidden for future use: backlog, cache, hoard, inventory, nest egg, reserve, reservoir, stockpile, store, treasure. Slang stash. See collect/distribute.
  2. A group of people sharing common ancestry: clan, family, house, kindred, lineage, tribe. Idioms: flesh and blood, kith and kin. See kin.
  3. One's ancestors or their character or one's ancestral derivation: ancestry, birth, blood, bloodline, descent, extraction, family, genealogy, line, lineage, origin, parentage, pedigree, seed. See kin, precede/follow.

verb

    To have for sale: carry, keep. See keep/release.

adjective

    Being of no special quality or type: average, common, commonplace, cut-and-dried, formulaic, garden, garden-variety, indifferent, mediocre, ordinary, plain, routine, run-of-the-mill, standard, undistinguished, unexceptional, unremarkable. See good/bad, usual/unusual.

 
Antonyms: stock

adj

Definition: commonplace
Antonyms: different, nonstandard, original, unusual

n

Definition: estimation, faith
Antonyms: fact, truth

v

Definition: supply with merchandise
Antonyms: deplete, use up, waste

 
Dental Dictionary: stock

n

A security certificate that represents an equity ownership in a corporation.

 
Britannica Concise Encyclopedia: stock

In finance, the subscribed capital of a corporation or limited-liability company, usually divided into shares and represented by transferable certificates. Many companies have only one class of stock, called common stock. Common stock, as a share of ownership in the company, entitles the holder to an interest in the company's earnings and assets. It carries voting rights that enable the holder to participate in the running of the company (unless such rights are specifically withheld, as in special classes of nonvoting shares). Dividends paid on common stock are often unstable because they vary with earnings; they are also usually less than earnings, the difference being used by the management to expand the firm. To appeal to investors who want to be sure of receiving dividends regularly, some companies issue preferred stock, which has a prior claim to dividends paid by the company and, in most cases, to the company's assets in case of its dissolution. Preferred-stock dividends are usually set at a fixed annual rate that must be paid before dividends are distributed to common stockholders. See also security, stock exchange.

For more information on stock, visit Britannica.com.

 
Architecture: stock


1. Lumber, panels, doors, windows, etc., commonly used and readily available from suppliers.
2. The principal supporting or holding part; the part in which other parts are inserted, as the body of a tool.
3. A tool, used in cutting threads for pipes or bolts, which holds the dies.

 
Columbia Encyclopedia: stock,
in finance, instrument certifying to shares in the ownership of a corporation. Bonds are similar evidences of shares in a loan to a corporation. Stock yields no dividends until claims of bondholders have been met. Preferred stock is entitled to dividends of a specified percentage per annum before common stock is entitled to any dividends; the common stock is then usually entitled to the rest of the profits. In case of liquidation of the company, holders of bonds and preferred stock take precedence over holders of common stock in the division of assets. Holders of common stock usually have voting rights in the management of the corporation; bondholders and, usually, holders of preferred stock have no voting rights. Since the value of common stock depends largely on its earnings, it is often issued with no par value. Public demand for securities and the need of corporations for ready capital have led to the development of stock exchanges in most of the major cities of the world (see stock exchange).

 
Law Encyclopedia: Stock
This entry contains information applicable to United States law only.

A security issued by a corporation that represents an ownership right in the assets of the corporation and a right to a proportionate share of profits after payment of corporate liabilities and obligations.

Shares of stock are reflected in written instruments known as stock certificates. Each share represents a standard unit of ownership in a corporation. Stock differs from consumer goods in that it is not used or consumed; it does not have any intrinsic value but merely represents a right in something else. Nevertheless, a stockholder is a real owner of a corporation's property, which is held in the name of the corporation for the benefit of all its stockholders. An owner of stock generally has the right to participate in the management of the corporation, usually through regularly scheduled stockholders' (or shareholders') meetings. Stocks differ from other securities such as notes and bonds, which are corporate obligations that do not represent an ownership interest in the corporation.

The value of a share of stock depends upon the issuing corporation's value, profitability, and future prospects. The market price reflects what purchasers are willing to pay based on their evaluation of the company's prospects.

Two main categories of stock exist: common and preferred. An owner of common stock is typically entitled to participate and vote at stockholders' meetings. In addition to common stock, some corporate bylaws or charters allow for the issuance of preferred stock. If a corporation does not issue preferred stock, all of its stock is common stock, entitling all holders to an equal pro rata division of profits or net earnings, should the corporation choose to distribute the earnings as dividends. Preferred stockholders are usually entitled to priority over holders of common stock should a corporation liquidate.

Preferred stocks receive priority over common stock with respect to the payment of dividends. Holders of preferred stock are entitled to receive dividends at a fixed annual rate before any dividend is paid to the holders of common stock. If the earnings to pay a dividend are more than sufficient to meet the fixed annual dividend for preferred stock, then the remainder of the earnings will be distributed to holders of common stock. If the corporate earnings are insufficient, common stockholders will not receive a dividend. In the alternative, a remainder may be distributed pro rata to both preferred and common classes of the stock. In such a case, the preferred stock is said to "participate" with the common stock.

A preferred stock dividend may be cumulative or noncumulative. In the case of cumulative preferred stock, an unpaid dividend becomes a charge upon the profits of the next and succeeding years. These accumulated and unpaid dividends must be paid to preferred stockholders before common stockholders receive any dividends. Noncumulative preferred stock means that a corporation's failure to earn or pay a dividend in any given year extinguishes the obligation, and no debit is made against the succeeding years' surpluses.

Par value is the face or stated value of a share of stock. In the case of common stocks, par value usually does not correspond to the market value of a stock, and a stated par value is of little significance. Par is important with respect to preferred stock, however, because it often signifies the dollar value upon which dividends are figured. Stocks without an assigned stated value are called no par. Some states have eliminated the concept of par value.

Blue chip stocks are stocks traded on a securities exchange (listed stock) that have minimum risk due to the corporation's financial record. Listed stock means a company has filed an application and registration statement with both the Securities and Exchange Commission and a securities exchange. The registration statement contains detailed information about the company to aid the public in evaluating the stock's potential. Floating stock is stock on the open market not yet purchased by the public. Growth stock is stock purchased for its perceived potential to appreciate in value, rather than for its dividend income. Penny stocks are highly speculative stocks that usually cost under a dollar per share.

See: securities; stock market.

 
Economics Dictionary: stock

A share in the ownership of a corporation.

 
Gardener's Dictionary: stock

  1. A plant or stem onto which a graft is made.
  2. A plant from which cuttings are taken or seeds are collected. Nurseries often maintain special stock plants for propagation.


 
Word Tutor: stock
pronunciation

IN BRIEF: n. - Quantity of something accumulated.

pronunciation We are raising a generation that has a woefully small stock of ideas and interests and emotions. — Robert McCracken

 
Wikipedia: stock


In financial markets, the stock capital of a corporation or a joint-stock company is the capital raised through the issuance, sale and distribution of shares. A person or organization that holds at least a partial share of stock is called a shareholder. The aggregate value of a corporation's issued shares is its market capitalization.

In the United Kingdom, South Africa, and Australia, the terms stock and share(s) are used the same way, but stock can also refer to completely different financial instruments such as government bonds or, less commonly, to all kinds of marketable securities.

In the plural, stocks is often used as a synonym for shares especially in the United States, but it is less commonly used that way outside of North America.

Types of stock

Common stock


Common stock, also referred to as common or ordinary shares, are, as the name implies, the most usual and commonly held form of stock in a corporation. The other type of shares that the public can hold in a corporation is known as preferred stock. Common stock that has been re-purchased by the corporation is known as treasury stock and is available for a variety of corporate uses.

Common stock typically has voting rights in corporate decision matters, though perhaps different rights from preferred stock. In order of priority in a liquidation of a corporation, the owners of common stock are near the last. Dividends paid to the stockholders must be paid to preferred shares before being paid to common stock shareholders. [1]

Preferred stock

Preferred stock, sometimes called preferred shares, have priority over common stock in the distribution of dividends and assets.

Most preferred shares provide no voting rights in corporate decision matters. However, some preferred shares have special voting rights to approve certain extraordinary events (such as the issuance of new shares, or the approval of the acquisition of the company), or to elect directors. [2]

Dual class stock

Dual class stock is issued for a single company with varying classes indicating different rights on voting and dividend payments. Each kind of share has its own class of shareholders entitling different rights.

Treasury stock

Treasury stock are shares that have been bought back from public. Treasury Stock is considered issued, but not outstanding.

Golden share

Golden share is a special share giving its holder a right to vote the Board's decisions. Usually, a government owns golden shares of important enterprises that were privatized. Golden shares are mostly used in European countries.

Stock derivatives

For more details on this topic, see equity derivatives.

A stock derivative is any financial claim which has a value that is dependent on the price of the underlying stock. Futures and options are the main types of derivatives on stocks. The underlying security may be a stock index or an individual firm's stock, e.g. single-stock futures.

Stock futures are contracts where the buyer, or long, takes on the obligation to buy on the contract maturity date, and the seller, or short takes on the obligation to sell. Stock index futures are generally not delivered in the usual manner, but by cash settlement.

A stock option is a class of option. Specifically, a call option is the right (not obligation) to buy stock in the future at a fixed price and a put option is the right (not obligation) to sell stock in the future at a fixed price. Thus, the value of a stock option changes in reaction to the underlying stock of which it is a derivative. The most popular method of valuing stock options is the Black Scholes model [3].

Apart from call options granted to employees, most stock options are transferable.

History

During Roman times, the empire contracted out many of its services to private groups called publicani. Shares in publicani were called "socii" (for large cooperatives) and "particulae" which were analogous to today's Over-The-Counter shares of small companies. Though the records available for this time are incomplete, Edward Chancellor states in his book Devil Take the Hindmost that there is some evidence that a speculation in these shares became increasingly widespread and that perhaps the first ever speculative bubble in "stocks" occurred.

The first company to issue shares of stock after the Middle Ages was the Dutch East India Company in 1606. The innovation of joint ownership made a great deal of Europe's economic growth possible following the Middle Ages. The technique of pooling capital to finance the building of ships, for example, made the Netherlands a maritime superpower. Before adoption of the joint-stock corporation, an expensive venture such as the building of a merchant ship could be undertaken only by governments or by very wealthy individuals or families.

Economic Historians find the Dutch stock market of the 1600s particularly interesting: there is clear documentation of the use of stock futures, stock options, short selling, the use of credit to purchase shares, a speculative bubble that crashed in 1695, and a change in fashion that unfolded and reverted in time with the market (in this case it was headdresses instead of hemlines). Dr. Edward Stringham also noted that the uses of practices such as short selling continued to occur during this time despite the government passing laws against it. This is unusual because it shows individual parties fulfilling contracts that were not legally enforceable and where the parties involved could incur a loss. Stringham argues that this shows that contracts can be created and enforced without state sanction or, in this case, in spite of laws to the contrary. Source: [4], "Devil Take the Hindmost" by Edward Chancellor.

Shareholder

A shareholder (or stockholder) is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. Companies listed at the stock market are expected to strive to enhance shareholder value.

Shareholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned) on matters such as elections to the board of directors, the right to share in distributions of the company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a liquidation of the company. However, shareholder's rights to a company's assets are subordinate to the rights of the company's creditors. This means that shareholders typically receive nothing if a company is liquidated after bankruptcy (if the company had had enough to pay its creditors, it would not have entered bankruptcy), although a stock may have value after a bankruptcy if there is the possibility that the debts of the company will be restructured.

Shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders.

Although directors and officers of a company are bound by fiduciary duties to act in the best interest of the shareholders, the shareholders themselves normally do not have such duties towards each other.

However, in a few unusual cases, some courts have been willing to imply such a duty between shareholders. For example, in California, majority shareholders of closely held corporations have a duty to not destroy the value of the shares held by minority shareholders. See Jones v. H. F. Ahmanson & Co., 1 Cal. 3d) [5].

The largest shareholders (in terms of percentages of companies owned) are often mutual funds, and especially passively managed exchange-traded funds.

Application

The owners of a company may want additional capital to invest in new projects within the company. They may also simply wish to reduce their holding, freeing up capital for their own private use.

By selling shares they can sell part or all of the company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends.

In the common case of a publicly traded corporation, where there may be thousands of shareholders, it is impractical to have all of them making the daily decisions required to run a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company.

In a typical case, each share constitutes one vote. Corporations may, however, issue different classes of shares, which may have different voting rights. Owning the majority of the shares allows other shareholders to be out-voted - effective control rests with the majority shareholder (or shareholders acting in concert). In this way the original owners of the company often still have control of the company.

Shareholder rights

Although ownership of 51% of shares does result in 51% ownership of a company, it does not give the shareholder the right to use a company's building, equipment, materials, or other property. This is because the company is considered a legal person, thus it owns all its assets itself. This is important in areas such as insurance, which must be in the name of the company and not the main shareholder.

In most countries, including the United States, boards of directors and company managers have a fiduciary responsibility to run the company in the interests of its stockholders. Nonetheless, as Martin Whitman writes:

"...it can safely be stated that there does not exist any publicly traded company where management works exclusively in the best interests of OPMI [Outside Passive Minority Investor] stockholders. Instead, there are both "communities of interest" and "conflicts of interest" between stockholders (principal) and management (agent). This conflict is referred to as the principal/agent problem. It would be naive to think that any management would forego management compensation, and management entrenchment, just because some of these management privileges might be perceived as giving rise to a conflict of interest with OPMIs." [Whitman, 2004, 5]

Even though the board of directors runs the company, the shareholder has some impact on the company's policy, as the shareholders elect the board of directors. Each shareholder typically has a percentage of votes equal to the percentage of shares he or she owns. So as long as the shareholders agree that the management (agent) are performing poorly they can elect a new board of directors which can then hire a new management team. In practice, however, genuinely contested board elections are rare. Board candidates are usually nominated by insiders or by the board of the directors themselves, and a considerable amount of stock is held and voted by insiders.

Owning shares does not mean responsibility for liabilities. If a company goes broke and has to default on loans, the shareholders are not liable in any way. However, all money obtained by converting assets into cash will be used to repay loans and other debts first, so that shareholders cannot receive any money unless and until creditors have been paid (most often the shareholders end up with nothing).

Means of financing

Financing a company through the sale of stock in a company is known as equity financing. Alternatively, debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company. Unofficial financing known as trade financing usually provides the major part of a company's working capital (day-to-day operational needs). Trade financing is provided by vendors and suppliers who sell their products to the company at short-term, unsecured credit terms, usually 30 days. Equity and debt financing are usually used for longer-term investment projects such as investments in a new factory or a new foreign market. Customer provided financing exists when a customer pays for services before they are delivered, e.g. subscriptions and insurance.

Trading

A stock exchange is an organization that provides a marketplace for either physical or virtual trading shares, bonds and warrants and other financial products where investors (represented by stock brokers) may buy and sell shares of a wide range of companies. A company will usually list its shares by meeting and maintaining the listing requirements of a particular stock exchange and the different. In the United States, through the inter-market quotation system, stocks listed on one exchange can also be bought or sold on several other exchanges, including relatively new so-called ECNs (Electronic Communication Networks like Archipelago or Instinet).

Stocks used to be broadly grouped into NYSE-listed and NASDAQ-listed stocks. Until a few years ago there was a law in the USA that NYSE listed stocks were not allowed to be listed on the NASDAQ or vice versa.

Many large foreign companies choose to list on a U.S. exchange as well as an exchange in their home country in order to broaden their investor base. These companies have then to ship a certain amount of shares to a bank to the US (a certain percentage of their principal) and put it in the safe of the bank. Then the bank where they deposited the shares can issue a certain amount of so-called American Depositary Shares, short ADS (singular). If someone buys now a certain amount of ADSs the bank where the shares are deposited issues an ADR American Depository Receipt (ADR) for the buyer of the ADSs.

Likewise, many large U.S. companies list themselves at foreign exchanges to raise capital abroad.

Arbitrage trading

Although it makes sense for some companies to raise capital by offering stock on more than one exchange, a keen investor with access to information about such discrepancies could invest in expectation of their eventual convergence, known as an arbitrage trade. In today's era of electronic trading, these discrepancies, if they exist, are both shorter-lived and more quickly acted upon. As such, arbitrage opportunities disappear quickly due to the efficient nature of the market.

Buying

There are various methods of buying and financing stocks. The most common means is through a stock broker. Whether they are a full service or discount broker, they arrange the transfer of stock from a seller to a buyer. Most trades are actually done through brokers listed with a stock exchange, such as the New York Stock Exchange.

There are many different stock brokers from which to choose, such as full service brokers or discount brokers. The full service brokers usually charge more per trade, but give investment advice or more personal service; the discount brokers offer little or no investment advice but charge less for trades. Another type of broker would be a bank or credit union that may have a deal set up with either a full service or discount broker.

There are other ways of buying stock besides through a broker. One way is directly from the company itself. If at least one share is owned, most companies will allow the purchase of shares directly from the company through their investor relations departments. However, the initial share of stock in the company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering in which the stock is purchased directly from the company, usually without the aid of brokers.

When it comes to financing a purchase of stocks there are two ways: purchasing stock with money that is currently in the buyers ownership, or by buying stock on margin. Buying stock on margin means buying stock with money borrowed against the stocks in the same account. These stocks, or collateral, guarantee that the buyer can repay the loan; otherwise, the stockbroker has the right to sell the stock (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50% of the value of the stocks in the account. Buying on margin works the same way as borrowing money to buy a car or a house, using the car or house as collateral. Moreover, borrowing is not free; the broker usually charges 8-10% interest.

Selling

Selling stock is procedurally similar to buying stock. Generally, the investor wants to buy low and sell high, if not in that order (short selling); although a number of reasons may induce an investor to sell at a loss, e.g., to avoid further loss.

As with buying a stock, there is a transaction fee for the broker's efforts in arranging the transfer of stock from a seller to a buyer. This fee can be high or low depending on which type of brokerage, discount or full service, handles the transaction.

After the transaction has been made, the seller is then entitled to all of the money. An important part of selling is keeping track of the earnings. Importantly, on selling the stock, in jurisdictions that have them, capital gains taxes will have to be paid on the additional proceeds, if any, that are in excess of the cost basis.

Stock price fluctuations

The price of a stock fluctuates fundamentally due to the theory of supply and demand. Like all commodities in the market, the price of a stock is directly proportional to the demand. However, there are many factors on the basis of which the demand for a particular stock may increase or decrease. These factors are studied using methods of fundamental analysis and technical analysis to predict the changes in the stock price. A recent study shows that customer satisfaction, as measured by the American Customer Satisfaction Index (ACSI), is significantly related to the stock market value. Stock price is also changed based on the forecast for the company and whether their profits are expected to increase or decrease.

See also

References

http://www.investorguide.com/igu-article-818-stock-basics-common-and-preferred-stock.html

External links

Stock market
Types of stocks Stock · Common stock  · Preferred stock  · Outstanding stock · Treasury stock
Participants Market maker · Floor trader · Floor broker
Exchanges Stock exchange · List of stock exchanges
Stock valuation Gordon model · Dividend yield · Income per share · Book value · Earnings yield · Beta coefficient
Financial ratios P/CF ratio · PE ratio · PEG ratio · Price/sales ratio · P/B ratio · D/E ratio · ROIC · ROE
Trading theories Dow Theory · Elliott Wave Theory  · Fundamental analysis · Technical analysis · Mark Twain effect · January effect · Efficient market hypothesis · Arbitrage pricing theory
Related terms Dividend · Stock split · Growth stock · Investment · Speculation · Trade · Day trading

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)

 
Translations: Translations for: Stock

Dansk (Danish)
n. - forråd, lager, oplag, aktier, obligationer, materiel, materiale, besætning, arkiv, kraftsuppe, afkog, stamme, grundlag
adj. - som er på lager, stående
v. tr. - føre, lagerføre, skæfte, skaffe besætning til
v. intr. - sætte nye skud

idioms:

  • stock car    skrammelbil, bil med kraftig motor til væddeløb
  • stock company    børsnoteret firma
  • stock control    avlskontrol
  • stock cube    suppeterning
  • stock exchange    fondsbørs
  • stock in trade    lagerbeholdning, varelager, fast inventar, standardudstyr, fast virkemiddel, teaterklichéer
  • stock market    obligationsmarked, fondsbørs
  • stock up    hobe sig op
  • take stock    tage bestik, gøre lager op, gøre status

Nederlands (Dutch)
voorraad, stam, veestapel, bouillon, aandeel, effecten, blok hout, strafpaal, kruisstuk van een anker, origineel, afkomst, in voorraad nemen/hebben, inslaan

Français (French)
n. - (Fin) ensemble du capital ou des actions d'une société, souche, origine, branche, lignée, cote, (Culin) bouillon, fût, (Bot) giroflée, talon (aux cartes), lavallière, étole, (Agric, Zool, Bot) bétail, cheptel, bovin, chevaux de race, porte-greffe(s), (Fin) valeurs (npl), titres (npl), (Naut) sur cale, (fig) en cours
adj. - classique, banal, stéréotypé
v. tr. - (Comm) avoir, vendre, remplir, garnir (des étagères), approvisionner
v. intr. - stocker, avoir, vendre, remplir, garnir, approvisionner, ranger, (Hort) pousser

idioms:

  • in stock    (avoir qch) en stock/en magasin
  • not put much stock in    ne pas trop faire confiance dans
  • out of stock    (être) épuisé/en rupture de stock
  • stock car    (Aut) stock-car, (US, Rail) wagon à bestiaux
  • stock company    (Fin) société par actions
  • stock control    gestion des stocks
  • stock cube    bouillon-cube
  • stock exchange    la Bourse
  • stock in trade    spécialité
  • stock market    bourse des valeurs, marché des valeurs
  • stock up    s'approvisionner (en)
  • take stock    faire le point
  • take stock in    faire le point sur

Deutsch (German)
n. - Aktie, Wertpapiere, Vorrat, Warenbestand, Abstammung, Stamm, Rohmaterial, Stock, Viehbestand, Brühe, (Bot.) Levkoje, (mar.) Helling
v. - am Lager haben, beliefern
adj. - Standard-, abgedroschen, Vieh-, Aktien-

idioms:

  • in stock    vorrätig
  • not put much stock in    nicht viel von etwas halten
  • out of stock    nicht vorrätig
  • stock car    Viehwaggon
  • stock company    stehende Truppe am Repertoiretheater
  • stock control    Lagerwirtschaft
  • stock cube    Brühwürfel
  • stock exchange    Börse
  • stock in trade    Inventar, (festes) Repertoire
  • stock market    Börse, Aktienmarkt
  • stock up    sich einen Vorrat anlegen
  • take stock    Inventur machen
  • take stock in    (fig.) viel von etw. halten

Ελληνική (Greek)
n. - απόθεμα, παρακαταθήκη, στοκ, κοντάκι, τούβλο, μηχανικός εξοπλισμός, κύριο στέλεχος φυτού ή δέντρου, κορμός, κούτσουρο, γενιά, σόι, γενεαλογικό δένδρο, καταγωγή, γόνος, απόγονος, ζωμός (κρέατος κ.λπ. για παρασκευή σάλτσας), (ιστ.) (στον πληθ.) ποδοκάκη, πεδούκλα, (οικον.) μετοχή, τίτλος, χρεόγραφο, (κρατικό) ομόλογο, (φυτολ.) ματθιόλα, βιολέτα, εκτίμηση, υπολογισμός
v. - εφοδιάζω/-ομαι, προμηθεύω/-ομαι, αποθηκεύω, γεμίζω, δημιουργώ απόθεμα, εμπλουτίζω
adj. - τετριμμένος, στερεότυπος

idioms:

  • stock car    ενισχυμένο αμάξι αγώνων, (ΗΠΑ) βαγόνι μεταφοράς κτηνών
  • stock company    μετοχική εταιρία, (ΗΠΑ) θίασος σταθερού ρεπερτορίου
  • stock control    έλεγχος αποθεμάτων
  • stock cube    κύβος ζωμού
  • stock exchange    (οικον.) χρηματιστήριο (αξιών)
  • stock in trade    σύνεργα του επαγγέλματος, απόθεμα, διαρκής παρακαταθήκη, αρχικό κεφάλαιο
  • stock market    ζωαγορά, (οικον.) χρηματιστήριο (αξιών)
  • stock up    δημιουργώ απόθεμα
  • take stock    ενεργώ απογραφή, (μτφ.) εξετάζω, εκτιμώ

Italiano (Italian)
rifornimento, provvista, azioni, fare scorta di, azione, tronco, bestiame, brodo, capitale azionario, estrazione, scorta

idioms:

  • stock car    automobile truccata
  • stock company    società per azioni
  • stock control    gestione delle scorte
  • stock cube    dado per brodo
  • stock exchange    borsa
  • stock in trade    merce in vendita
  • stock market    borsa
  • stock up    fare scorta di
  • take stock    fare l'inventario
  • take stock of    prendere in considerazione, prestare attenzione a

Português (Portuguese)
n. - estoque (m), grupo de ações (m) (Econ.)
v. - armazenar, vender

idioms:

  • stock car    carro potente usado para corrida
  • stock company    empresa cujo capital é formado por ações
  • stock control    controle de estoque
  • stock cube    caldo de carne ou vegetais em cubo
  • stock exchange    Bolsa de Valores (f) (Econ.)
  • stock in trade    coisas normais realizadas no seu negócio
  • stock market    mercado de ações (m) (Econ.)
  • stock up    comprar
  • take stock    pensar a respeito

Русский (Russian)
главный ствол (дерева), неодушевленный предмет, глупый, бесчувственный человек, опора, коловорот, источник происхождения, прародитель, родословная, род, раса, фонд, имущество, поголовье скота, сырье, репутация, имеющийся в наличии, шаблонный, биржевой, снабжать, иметь в наличии

idioms:

  • stock car    серийный или стандартный автомобиль, гоночный автомобиль, переделанный из серийного, вагон или грузовик для перевозки скота
  • stock company    акционерная компания, постоянная театральная труппа
  • stock control    контроль за состоянием товарных запасов
  • stock cube    суповой кубик
  • stock exchange    фондовая биржа
  • stock in trade    шаблонные фразы, уловки, приемы, профессиональные навыки
  • stock market    фондовая биржа, уровень цен на бирже
  • stock up    запасать
  • take stock    инвентаризировать, проверять запас

Español (Spanish)
n. - cepo, picota, grada de construcción, astillero, acción, valores, títulos, tronco, ganado, caldo, claro, capital social, capital en acciones, estirpe, linaje, existencias, reservas, surtido, repertorio, inventario, estima, aprecio, interés, materias primas, muebles, enseres, mango, manija, caja (del fusil), cama (del arado), cabeza (del timón)
adj. - perteneciente o relativo a las existencias, a los valores públicos, al ganado, etc., de uso o tipo corriente, común, usual, trillado, estereotipado, socorrido
v. tr. - tener en existencia, tener existencias, proveer, abastecer, surtir, poblar, sembrar, almacenar, acopiar, encepar, usar como pasto
v. intr. - abastecerse de, proveerse de, surtirse

idioms:

  • in stock    en existencia, en inventario
  • not put much stock in    no tener demasiada fe en algo
  • out of stock    vendido, agotado
  • stock car    vagón para el ganado, automóvil que participa en carreras donde se permiten choques
  • stock company    sociedad anónima, sociedad por acciones
  • stock control    control de existencias
  • stock cube    cubito de caldo
  • stock exchange    Bolsa de valores
  • stock in trade    existencias a la venta, herramientas, instrumentos, útiles, repertorio
  • stock market    bolsa, mercado de valores
  • stock up    abastecerse de
  • take stock    hacer el inventario, evaluar una situación en todos sus aspectos, detenerse a pensar
  • take stock in    hacer caso, apreciar, confiar

Svenska (Swedish)
n. - trädstam, aktier, härstamning, råämne, lager, förråd, kreatursbestånd, boskap, statslån, aktiekapital, statsobligationer, underlag, block, fonder
v. - förse, lagerföra, ha på lager, skaffa
adj. - kreaturs-, fond-, boskaps-, börs-

中文（简体） (Chinese (Simplified))
树干, 股份, 血统, 股票的, 常备的, 普通的, 装把手于, 备有, 进货, 出新芽, 采购

idioms:

  • stock car    改装过的赛车, 运家畜的货车
  • stock company    股份公司
  • stock control    存货控制, 库存核算
  • stock cube    汤汁方块, 固态汤料
  • stock exchange    证券交易所
  • stock in trade    存货, 惯用手段, 现货, 原料
  • stock market    股票市场, 股票行情, 股票交易, 牲畜市场
  • stock up    备货
  • take stock    清查存货

中文（繁體） (Chinese (Traditional))
n. - 樹幹, 股份, 血統
adj. - 股票的, 常備的, 普通的
v. tr. - 裝把手於, 備有, 進貨
v. intr. - 出新芽, 採購

idioms:

  • stock car    改裝過的賽車, 運家畜的貨車
  • stock company    股份公司
  • stock control    存貨控制, 庫存核算
  • stock cube    湯汁方塊, 固態湯料
  • stock exchange    證券交易所
  • stock in trade    存貨, 慣用手段, 現貨, 原料
  • stock market    股票市場, 股票行情, 股票交易, 牲畜市場
  • stock up    備貨
  • take stock    清查存貨

한국어 (Korean)
n. - 저장, (집합적) 가축, 혈통
adj. - 재고의, 상품 관리를 맡은, 평범한
v. tr. - 들여놓다, 비축하다, 공급하다
v. intr. - 들여놓다, 사재다, 어린 가지(눈이)가 돋아나다

idioms:

  • stock up    비축하다
  • take stock    재고 조사를 하다

日本語 (Japanese)
n. - 仕入れ品, 在庫品, 貯蔵, 蓄え, 家畜類, 株, 株式, 柄, 台, 幹, 原料, 家系, 種族, 家柄
adj. - 在庫の, 標準的な, 決まりきった, 陳腐な
v. - 仕入れる, 蓄える, 身に付けさせる, 放流する, 入れる, 貯蔵する

idioms:

  • laughing stock    嘲笑の的
  • stock car    一般市販車, ストックカー
  • stock company    専属劇団, 株式会社
  • stock control    在庫管理, 常備品管理
  • stock cube    固形スープの素
  • stock exchange    証券取引所
  • stock in trade    手持ち品, 商売道具
  • stock market    株式市場, 株式売買, 家畜市場
  • stock up    十分に蓄える
  • take stock    在庫を調べる, 棚卸しをする, 調査する, 吟味する
  • voting stock    議決権株式

العربيه (Arabic)
‏(الاسم) أصل, سلاله, كعب البندقيه, مرقه طبخه, بضائع أو سلع, مخزونات, أسهم و سندات, جذع الشجرة (فعل) جهز بالبضائع, خزن, زود (صفه) مخزون, يستعمل عادة, اعتادي, غير مثير‏

עברית (Hebrew)
n. - ‮מלאי, סחורה, גזע-עץ, בול-עץ, כן, בסיס, קת, משק-החי, מניות, איגרות חוב, חומר-גלם, תמצית-מרק, מוניטין, מוצא, סוג של פרח, עניבה, תיאטרון עם קבוצת שחקנים קבועה, סד מעץ לעינוי/הענשה‬
adj. - ‮רגיל, שגרתי, קבוע, מוחזק במלאי, ממוצע, נדוש‬
v. tr. - ‮החזיק במלאי, צייד, אגר‬
v. intr. - ‮נמצא במלאי‬

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