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← Older revision		Revision as of 11:10, 25 August 2023
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	A '''stock''' is a unit of ownership in a company — If you own a stock, that makes you a shareholder, meaning that you may be eligible to receive dividends if the company succeeds and you may have a vote in some company decisions. Stocks are an important part of the global economy, allowing companies to raise money for the operation of their businesses by selling shares (or pieces of ownership) to the public. Shares can be bought or sold via an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. In limited cases, stocks can be sold privately. Specific regulations set by the [[Securities and Exchange Commission (SEC)]] govern how companies can manage or distribute their stocks. Stocks can be either common stock, which gives shareholders voting rights on certain company decisions, or preferred stock, which gives shareholders no voting rights but often guarantees them fixed dividend payments in perpetuity.<ref>[https://learn.robinhood.com/articles/6FKal8yK9kk22uk65x3Jno/what-is-a-stock/V Definition of a Stock?]</ref>		A '''stock''' is a unit of ownership in a company — If you own a stock, that makes you a shareholder, meaning that you may be eligible to receive dividends if the company succeeds and you may have a vote in some company decisions. Stocks are an important part of the global economy, allowing companies to raise money for the operation of their businesses by selling shares (or pieces of ownership) to the public. Shares can be bought or sold via an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. In limited cases, stocks can be sold privately. Specific regulations set by the [[Securities and Exchange Commission (SEC)]] govern how companies can manage or distribute their stocks. Stocks can be either common stock, which gives shareholders voting rights on certain company decisions, or preferred stock, which gives shareholders no voting rights but often guarantees them fixed dividend payments in perpetuity.<ref>[https://learn.robinhood.com/articles/6FKal8yK9kk22uk65x3Jno/what-is-a-stock/V Definition of a Stock?]</ref>

−	Corporations issue (sell) stock to raise funds to operate their businesses. The holder of stock (a ~~shareholder~~) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings. In other words, a shareholder is now an owner of the issuing 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 a claim to 10% of the company's assets and earnings. Stockholders do not own corporations; they own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations file taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a “person” means that the corporation owns its own assets. A corporate office full of chairs and tables belongs to the corporation, and not to the shareholders.<ref>[https://www.investopedia.com/terms/s/stock.asp Understanding Stocks]</ref>	+	Corporations issue (sell) stock to raise funds to operate their businesses. The holder of stock (a [[Shareholder]]) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings. In other words, a shareholder is now an owner of the issuing 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 a claim to 10% of the company's assets and earnings. Stockholders do not own corporations; they own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations file taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a “person” means that the corporation owns its own assets. A corporate office full of chairs and tables belongs to the corporation, and not to the shareholders.<ref>[https://www.investopedia.com/terms/s/stock.asp Understanding Stocks]</ref>

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 #[[Dividend]]: Regular payments made by corporations to their shareholders (stockholders) from the company's earnings. Stock ownership can yield dividends.
 #Stock Market: The aggregation of buyers and sellers of stocks (shares). This is the platform where stocks are bought and sold.
 #[[Initial Public Offering (IPO)]]: The process through which a company offers its shares to the public for the first time. An IPO introduces a company's stock to the stock market.
 #Stock Exchange: A place or electronic platform where stock buyers and sellers trade stocks. Examples include the New York Stock Exchange (NYSE) and NASDAQ.

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 == What is a Stock? ==
-A '''stock''' is a unit of ownership in a company — If you own a stock, that makes you a shareholder, meaning that you may be eligible to receive dividends if the company succeeds and you may have a vote in some company decisions. Stocks are an important part of the global economy, allowing companies to raise money for the operation of their businesses by selling shares (or pieces of ownership) to the public. Shares can be bought or sold via an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. In limited cases, stocks can be sold privately. Specific regulations set by the Securities Exchange Commission (SEC) govern how companies can manage or distribute their stocks. Stocks can be either common stock, which gives shareholders voting rights on certain company decisions, or preferred stock, which gives shareholders no voting rights but often guarantees them fixed dividend payments in perpetuity.<ref>[https://learn.robinhood.com/articles/6FKal8yK9kk22uk65x3Jno/what-is-a-stock/V Definition of a Stock?]</ref>
+A '''stock''' is a unit of ownership in a company — If you own a stock, that makes you a shareholder, meaning that you may be eligible to receive dividends if the company succeeds and you may have a vote in some company decisions. Stocks are an important part of the global economy, allowing companies to raise money for the operation of their businesses by selling shares (or pieces of ownership) to the public. Shares can be bought or sold via an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. In limited cases, stocks can be sold privately. Specific regulations set by the [[Securities and Exchange Commission (SEC)]] govern how companies can manage or distribute their stocks. Stocks can be either common stock, which gives shareholders voting rights on certain company decisions, or preferred stock, which gives shareholders no voting rights but often guarantees them fixed dividend payments in perpetuity.<ref>[https://learn.robinhood.com/articles/6FKal8yK9kk22uk65x3Jno/what-is-a-stock/V Definition of a Stock?]</ref>
 Corporations issue (sell) stock to raise funds to operate their businesses. The holder of stock (a shareholder) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings. In other words, a shareholder is now an owner of the issuing 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 a claim to 10% of the company's assets and earnings. Stockholders do not own corporations; they own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations file taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a “person” means that the corporation owns its own assets. A corporate office full of chairs and tables belongs to the corporation, and not to the shareholders.<ref>[https://www.investopedia.com/terms/s/stock.asp Understanding Stocks]</ref>
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 A person who owns a percentage of the stock has ownership of the corporation proportional to their share. The shares form stock. The stock of a corporation is partitioned into shares, the total of which is stated at the time of business formation. Additional shares may subsequently be authorized by the existing shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value, which is a nominal accounting value used to represent the equity on the balance sheet of the corporation. In other jurisdictions, however, shares of stock may be issued without associated par value.
-Shares represent a fraction of ownership in a business. A business may declare different types (or classes) of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a legal document that specifies the number of shares owned by the shareholder, and other specifics of the shares, such as the par value, if any of the class of the shares.
+Shares represent a fraction of ownership in a [[business]]. A business may declare different types (or classes) of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a legal document that specifies the number of shares owned by the shareholder, and other specifics of the shares, such as the par value, if any of the class of the shares.
 In the United Kingdom, the Republic of Ireland, South Africa, and Australia, stock can also refer to completely different financial instruments such as government bonds or, less commonly, to all kinds of marketable securities.
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 ==See Also==
-*[[Stock Dividend]]
+#[[Stock Dividend]]
-*[[Targeted Repurchase]]
+#[[Targeted Repurchase]]

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 ==References==
 <references/>
-__NOTOC
+__NOTOC__

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-A '''stock''' is a unit of ownership in a company — If you own a stock, that makes you a shareholder, meaning that you may be eligible to receive dividends if the company succeeds and you may have a vote in some company decisions. Stocks are an important part of the global economy, allowing companies to raise money for the [[Business Operations|operation of their businesses]] by selling [[Stock|shares]] (or pieces of ownership) to the public. Shares can be bought or sold via an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. In limited cases, stocks can be sold privately. Specific regulations set by the Securities Exchange Commission (SEC) govern how companies can manage or distribute their stocks. Stocks can be either common stock, which gives [[Shareholder|shareholders]] voting rights on certain company decisions, or preferred stock, which gives shareholders no voting rights, but often guarantees them fixed dividend payment in perpetuity.<ref>Definition - What is a Stock? [https://learn.robinhood.com/articles/6FKal8yK9kk22uk65x3Jno/what-is-a-stock/V Robinhood]</ref>
+A '''stock''' is a unit of ownership in a company — If you own a stock, that makes you a shareholder, meaning that you may be eligible to receive dividends if the company succeeds and you may have a vote in some company decisions. Stocks are an important part of the global economy, allowing companies to raise money for the [[Business Operations|operation of their businesses]] by selling shares (or pieces of ownership) to the public. Shares can be bought or sold via an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. In limited cases, stocks can be sold privately. Specific regulations set by the Securities Exchange Commission (SEC) govern how companies can manage or distribute their stocks. Stocks can be either common stock, which gives [[Shareholder|shareholders]] voting rights on certain company decisions, or preferred stock, which gives shareholders no voting rights, but often guarantees them fixed dividend payment in perpetuity.<ref>Definition - What is a Stock? [https://learn.robinhood.com/articles/6FKal8yK9kk22uk65x3Jno/what-is-a-stock/V Robinhood]</ref>
-Corporations issue (sell) stock to raise funds to operate their businesses. The holder of stock (a shareholder) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings. In other words, a shareholder is now an owner of the issuing 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 and earnings. [[Shareholder|Stock holders]] do not own corporations; they own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations file taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a “person” means that the corporation owns its own assets. A corporate office full of chairs and tables belongs to the corporation, and not to the shareholders.<ref>Understanding Stocks [https://www.investopedia.com/terms/s/stock.asp Investopedia]</ref>
+Corporations issue (sell) stock to raise funds to operate their businesses. The holder of stock (a shareholder) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings. In other words, a shareholder is now an owner of the issuing 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 and earnings. Stock holders do not own corporations; they own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations file taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a “person” means that the corporation owns its own assets. A corporate office full of chairs and tables belongs to the corporation, and not to the shareholders.<ref>Understanding Stocks [https://www.investopedia.com/terms/s/stock.asp Investopedia]</ref>
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 *No liquidation preference: When a company liquidates, creditors are paid before equity holders. In most cases, a company will only liquidate when it has very little assets left to operate. In most cases, that means that there will be no assets left for equity holders once creditors are paid off.
 *Irrelevant power to vote: While retail investors technically have voting rights in executive board meetings, in practice they usually have very limited influence or power. The majority shareholder typically determines the outcome of all votes at shareholder meetings.
 ===References===
 <references/>

← Older revision		Revision as of 22:18, 26 March 2021
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	*No liquidation preference: When a company liquidates, creditors are paid before equity holders. In most cases, a company will only liquidate when it has very little assets left to operate. In most cases, that means that there will be no assets left for equity holders once creditors are paid off.		*No liquidation preference: When a company liquidates, creditors are paid before equity holders. In most cases, a company will only liquidate when it has very little assets left to operate. In most cases, that means that there will be no assets left for equity holders once creditors are paid off.
	*Irrelevant power to vote: While retail investors technically have voting rights in executive board meetings, in practice they usually have very limited influence or power. The majority shareholder typically determines the outcome of all votes at shareholder meetings.		*Irrelevant power to vote: While retail investors technically have voting rights in executive board meetings, in practice they usually have very limited influence or power. The majority shareholder typically determines the outcome of all votes at shareholder meetings.
		+
		+
		+	===References===
		+	<references/>

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-'''Key Facts on Stocks<ref>Key things to know about stocks [https://www.nerdwallet.com/article/investing/what-is-a-stock Nerdwallet]</ref>'''<br />
+'''Types of Stocks<ref>Types of Stocks [https://www.thebalance.com/what-are-stocks-3306181 the balance]</ref>'''<br />
-*''Investors who do best over the long term buy and hold.'' That means they own a diversified portfolio of many stocks and hold on to them through good times and bad.
+There are two main types of stocks: common and preferred. The stocks tracked on the Dow Jones Industrial Averages and the S&P 500 are common; their values depend on when they are traded. Common stock owners can vote on a corporation's affairs, such as the board of directors, mergers and acquisitions, and takeovers. However, if a company goes bankrupt and liquidates its assets, common stock owners are last in line for a payout, after the company's bondholders and preferred stockholders.
-*''Investing in individual stocks takes time.'' You should research each stock you purchase, which includes a deep dive into the bones of the company and its financials. Many investors opt to save time by investing in stocks through equity mutual funds, index funds and ETFs instead. These allow you to purchase many stocks in a single transaction, offering instant diversification and reducing the amount of legwork it takes to invest.
 In addition to these two types of stocks, there are other ways to categorize stocks, according to the characteristics of the companies that issued them. These different groupings meet the varying needs of shareholders. Stocks can be grouped by industry sector, including:
@@ Line 35: / Line 34: @@
 *Value stocks pay dividends since the price of the stock itself is not expected to rise much. These tend to be large companies that aren't exciting, so the market has ignored them. Savvy investors see the price as undervalued for what the company delivers.
 *Blue-chip stocks are fairly valued and may not grow quickly, but they have proven to be reliable companies in stable industries over the years. They pay dividends and are considered a safer investment than growth or value stocks. They also are called income stocks.

@@ Line 4: / Line 4: @@
-'''Key Facts on Stocks<re>Key things to know about stocks [https://www.nerdwallet.com/article/investing/what-is-a-stock Nerdwallet]</ref>'''<br />
+'''Shares<ref>What are Shares? [https://en.wikipedia.org/wiki/Stock Wikipedia]</ref>'''<br />
 *''Investors who do best over the long term buy and hold.'' That means they own a diversified portfolio of many stocks and hold on to them through good times and bad.
 *''Investing in individual stocks takes time.'' You should research each stock you purchase, which includes a deep dive into the bones of the company and its financials. Many investors opt to save time by investing in stocks through equity mutual funds, index funds and ETFs instead. These allow you to purchase many stocks in a single transaction, offering instant diversification and reducing the amount of legwork it takes to invest.
 *''There are two main types of stocks:'' common and preferred. Most investors own common stock in a public company. Common stock may pay dividends, but dividends are not guaranteed and the amount of the dividend is not fixed. Preferred stocks typically pay fixed dividends, so owners can count on a set amount of income from the stock each year. Owners of preferred stock also stand at the front of the line when it comes to the company’s earnings: Excess cash distributed by dividend is paid to preferred shareholders first, and if the company goes bankrupt, preferred-stock owners receive any liquidation of assets ahead of common-stock owners.

← Older revision		Revision as of 21:51, 26 March 2021
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−	'''~~Content Coming Soon~~'''	+	A '''stock''' is a unit of ownership in a company — If you own a stock, that makes you a shareholder, meaning that you may be eligible to receive dividends if the company succeeds and you may have a vote in some company decisions. Stocks are an important part of the global economy, allowing companies to raise money for the [[Business Operations\|operation of their businesses]] by selling [[Stock\|shares]] (or pieces of ownership) to the public. Shares can be bought or sold via an exchange, such as the New York Stock Exchange (NYSE) or Nasdaq. In limited cases, stocks can be sold privately. Specific regulations set by the Securities Exchange Commission (SEC) govern how companies can manage or distribute their stocks. Stocks can be either common stock, which gives [[Shareholder\|shareholders]] voting rights on certain company decisions, or preferred stock, which gives shareholders no voting rights, but often guarantees them fixed dividend payment in perpetuity.<ref>Definition - What is a Stock? [https://learn.robinhood.com/articles/6FKal8yK9kk22uk65x3Jno/what-is-a-stock/V Robinhood]</ref>
		+
		+	Corporations issue (sell) stock to raise funds to operate their businesses. The holder of stock (a shareholder) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings. In other words, a shareholder is now an owner of the issuing 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 and earnings. [[Shareholder\|Stock holders]] do not own corporations; they own shares issued by corporations. But corporations are a special type of organization because the law treats them as legal persons. In other words, corporations file taxes, can borrow, can own property, can be sued, etc. The idea that a corporation is a “person” means that the corporation owns its own assets. A corporate office full of chairs and tables belongs to the corporation, and not to the shareholders.<ref>Understanding Stocks [https://www.investopedia.com/terms/s/stock.asp Investopedia]</ref>
		+
		+
		+	'''Key Facts on Stocks<re>Key things to know about stocks [https://www.nerdwallet.com/article/investing/what-is-a-stock Nerdwallet]</ref>'''<br />
		+	*''Investors who do best over the long term buy and hold.'' That means they own a diversified portfolio of many stocks and hold on to them through good times and bad.
		+	*''Investing in individual stocks takes time.'' You should research each stock you purchase, which includes a deep dive into the bones of the company and its financials. Many investors opt to save time by investing in stocks through equity mutual funds, index funds and ETFs instead. These allow you to purchase many stocks in a single transaction, offering instant diversification and reducing the amount of legwork it takes to invest.
		+	*''There are two main types of stocks:'' common and preferred. Most investors own common stock in a public company. Common stock may pay dividends, but dividends are not guaranteed and the amount of the dividend is not fixed. Preferred stocks typically pay fixed dividends, so owners can count on a set amount of income from the stock each year. Owners of preferred stock also stand at the front of the line when it comes to the company’s earnings: Excess cash distributed by dividend is paid to preferred shareholders first, and if the company goes bankrupt, preferred-stock owners receive any liquidation of assets ahead of common-stock owners.