The useful idea
- The useful idea
Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the shares by which ownership of a corporation or company is divided.
- How it works
A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares.
- Why it matters
This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured
Why this matters
Use Stock to compare the trade-offs before committing money.
Try this
Use Stock to compare the trade-offs before committing money.
Test your recall
Which idea belongs to the explanation of Stock?
- Why it matters
- How it works
- The useful idea — correct
Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the shares by which ownership of a corporation or company is divided.
General education only — not personal financial advice.