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Stock

• Holders have residual claims to firm and they are the owners. Holders allowed to elect the board of directors which hires, fires, and sets the compensation of top executives. Returns to common stock occurs with dividends declared by the board and capital gains on sale of stock. Preferred stock has both debt and equity characteristics. Pays fixed dividends (like debt) and dividends may be skipped (like stocks). Holders of preferred stock do not vote at the annual shareholders meetings. All preferred dividends must be paid before common dividends can be paid.

• Ownership of a corporation which is represented by shares which represent a piece of the corporation's assets and earnings.

 
 

Follow this link for all the terms related to stock.

 
 Embedded terms in definition
 Assets
Capital gain
Capital
Common dividends
Corporation
Debt
Dividends
Earnings
Equity
Firm
Preferred dividends
Preferred stock
Residual claim
Sale
Shareholders
Shares
With dividend
 
 Referenced Terms
 52 week hi/low prices: The highest and lowest prices for the Stock in the last 52 weeks.

 Acquisition of stock: A merger or consolidation in which an acquirer purchases the acquiree's Stock.

 American depositary receipt: Is an instrument which is issued in the United States but based on foreign securities. This security facilitates trading and investment because it is quoted in terms of the U.S. Dollar. This compares to the initial situation of the underlying shares quoted and traded in currencies other than the U. S. dollar.Abbreviated ADR or ADRS. Certificates issued by a U.S. depositary bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are sponsored, the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADRs. Unsponsored ADRs do not receive such assistance. ADRs carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American depositary shares (ADSs) are a similar form of certification.Claims issued by U.S. banks representing ownership of shares of a foreign company's Stock held on deposit by the U.S. bank in the foreign market and issued in dollars to U.S. investors.A negotiable certificate representing a given number of shares of Stock in a foreign corporation; it is bought and sold in the American securities markets, just as stock is traded. ADRs are issued by a U.S. bank, consisting of a bundle of shares of a foreign corporation that are being held in custody overseas. ADRs can be sponsored, which means the corporation provides financial and other information to the bank, or unsponsored. While ADRs have the same currency and economic risks as the underlying foreign shares, they are much more convenient for U.S. shareholders to own since there are no problems in transferring securities from a foreign country or currency conversion.

 American depositary receipt: Is an instrument which is issued in the United States but based on foreign securities. This security facilitates trading and investment because it is quoted in terms of the U.S. Dollar. This compares to the initial situation of the underlying shares quoted and traded in currencies other than the U. S. dollar.Abbreviated ADR or ADRS. Certificates issued by a U.S. depositary bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are sponsored, the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADRs. Unsponsored ADRs do not receive such assistance. ADRs carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American depositary shares (ADSs) are a similar form of certification.Claims issued by U.S. banks representing ownership of shares of a foreign company's Stock held on deposit by the U.S. bank in the foreign market and issued in dollars to U.S. investors.A negotiable certificate representing a given number of shares of Stock in a foreign corporation; it is bought and sold in the American securities markets, just as stock is traded. ADRs are issued by a U.S. bank, consisting of a bundle of shares of a foreign corporation that are being held in custody overseas. ADRs can be sponsored, which means the corporation provides financial and other information to the bank, or unsponsored. While ADRs have the same currency and economic risks as the underlying foreign shares, they are much more convenient for U.S. shareholders to own since there are no problems in transferring securities from a foreign country or currency conversion.

 American option: An option that may be exercised at any time up to and including the expiration date. Related: European optionAn option that may be exercised at any time during the life of the option. Stock options that trade in U.S. option exchanges, such as the CBOE, are of American types. Index options are of either American (option on S&P100 index, called OEX) or European types (option on S&P500 index, called SPX). See call and put options.

 
 Related Terms
 

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