Stock

:''See stock (disambiguation) for other meanings of the term stock'' A stock, also referred to as a share, is commonly a share of ownership in a corporation. ==History== The first company that issued shares is considered to be the Northern-European copper mining enterprise Stora Kopparberg, in the 13th century. ==Ownership== The owners and Finance backers of a company may want additional capital to invest in new projects within the company. If they were to sell the company it would represent a loss of control over the company. Alternatively, 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 a share in the ownership of the company, including the right to a fraction of the assets of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends. However, the original owners of the company often still have control of the company, and can use the money paid for the shares to grow the company. In the common case, where there are thousands of shareholders, it is impractical to have all of them making the daily decisions required in the running of a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company. However, the choices are usually nominated by insiders or the board of the directors themselves, which over time has led to most of the top executives being on each other's boards. Each share constitutes one vote (except in a Cooperative where every member gets one vote regardless of the number of shares they hold). Thus, if one shareholder owns more than half the shares, they can out-vote everyone else, and thus have control of the company. ==Shareholder rights== Although owning 51% of shares does mean that you own 51% of the company and that you have 51% of the votes, the company is considered a legal person, thus it owns all its assets, (buildings, equipment, materials etc) itself. A shareholder has no right to these without the company's permission, even if that shareholder owns almost all the shares. This is important in areas such as insurance, which must be in the name of the company not the main shareholder. In most countries, including the United States, board 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 run the company, the shareholder has some impact on the company's policy, as the shareholders elect the board of directors. Each shareholder has a percentage of votes equal to the percentage of shares he owns. So as long as the shareholders agree that the management (agent) are performing poorly they can elect a new board of directors. 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, so that shareholders cannot receive any money until creditors have been paid. ==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. ==Trading== Shares of stock are usually traded on a stock exchange, where people and organizations may buy and sell shares in a wide range of companies. A given company will usually only trade its shares in one market, and it is said to be quoted, or listed, on that stock exchange. However, some large, multinational corporations are listed on more than one exchange. They are referred to as inter-listed shares. ==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 are all doing one thing � arranging the transfer of stock from a seller to a buyer. Most of the trades are actually done through brokers listed with a stock exchange such as the New York Stock Exchange. There are many different stock brokers to choose from 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's 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 a company 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 stocks (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50 percent 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 you 8-10 percent interest. ==Selling== Selling stock in a company goes through many of the same procedures as buying stock. Generally, the investor wants to buy low and sell high; however, this is not how it always ends up. Sometimes, the investor will cut their losses and claim a 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 if it is a full service or discount broker. 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. It is important to remember that upon selling the stock, capital gains taxes will have to be paid on the additional money earned. ==Technology's Influence on Trading== Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Even though the origins of stock trading go back to the 13th century, the market as we know it today did not catch on strongly until the late 1800s. Co-production between technology and society has led the push for effective and efficient ways of trading. Technology has allowed the stock market to grow tremendously, and all the while society has encouraged the growth. Within seconds of an order for a stock, the transaction can now take place. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a very low cost per transaction. Trading can even be done through Computer-Mediated Communication (CMC) use of mobile devices such as hand computers and cellular phones. These advances in technology have made day trading possible. The stock market has grown so that some argue that it represents a country's economy. This growth has been enjoyed largely to the credibility and reputation that the stock market has earned. ==Types== There are several types of shares, including common stock, preferred stock, treasury stock, and dual class shares. Preferred stock, sometimes called preference shares, have priority over common stock in the distribution of dividends and assets, and sometime have enhanced voting rights such as the ability to veto mergers or acquistions or the right of first refusal when new shares are issued (i.e. the holder of the preferred stock can buy as much as they want before the stock is offered to others). A dual class equity structure has several classes of shares (for example Class A, Class B, and Class C) each with its own advantages and disadvantages. Treasury stock are shares that have been bought back from the public. ==Derivatives== A stock option is the right (or obligation) to buy or sell stock in the future at a fixed price. Stock options are often part of the package of executive compensation offered to key executives. Some companies extend stock options to all (or nearly all) of their employees. This was especially true during the dot-com boom of the mid- to late- 1990s, in which the major compensation of many employees was in the increase in value of the stock options they held, rather than their wages or salary. Some employees at dot-com companies became millionaires on their stock options. This is still a major method of compensation for CEO's. The theory behind granting stock options to executives and employees of a corporation is that, since their financial fortunes are tied to the stock price of the company, they will be motivated to increase the value of the stock over time. ==See also== *American Depositary Receipt *Equity investment *Jesse Lauriston Livermore *Share prices *Short selling *Stock valuation ==References== *Martin Whitman, [http://www.thirdavenuefunds.com/4Q04.pdf Third Avenue Value Fund], in Third Avenue Funds ''Letters to Our Shareholders'', Q4, 2004. == External links == * The [http://www.oldest-share.com/ oldest share] in the world, issued by the Dutch East India Company ''VOC'', 1606. Stock market Equity securities

Stock

Hi, I see you've done a nice job fixing up the Dragon Quest page. Please continue to contribute to Wikipedia. User:Acegikmo1 22:45, 12 Jun 2004 (UTC)

Stock

== Share vs Stock == Is there really anywhere in the world where this concept is referred to primarily as "share" and not stock? A share is a unit of account, or a measurement for the concept of owning stock in a company. I wondered if it was just a British usage, so a quick survey of the BBC news shows the word share used sometimes, stock others. Specifically, the BBC calls the markets stock markets and the London Stock Exchange. A survey of the Sydney Morning Herald appears similar, with more balance towards the use of "stock" for the concept and "share" to refer to the number of units of stock. So given the term is never called "shares" in the US and seems mixed in England and Australia at least, it seems much more appropriate to have this article moved to "Stock", with at most a disambig message to alert people to other uses of that word. I will make that move unless someone has good justification to oppose. - User:Taxman 19:44, Jun 30, 2004 (UTC) Technically, stock refers to the invested capital in a company. A share means a share of stock, or a share in the invested capital of a company. If a company issues 3000 shares, each having a par value of $1, then the total stock of the company is $3000. So, while in common usage stock and share are used interchangeably, they actually mean different in law and finance. Someone should change this. User:Pmadrid 06:16, 1 Aug 2004 (UTC) My understanding is somewhat different: Company stock is a category of securities or financial instruments which includes company shares and company (corporate) bonds. The capital of a business includes the shares and bonds. A share is a ''share in the ownership'' and therefore the profits. Stock is shares and bonds! But stock need not be company stock: Government bonds are stock too! User:Psb777 23:19, 18 Dec 2004 (UTC) :Where did you get that from? Though I don't profess to be an expert on the subject, I have never heard of your version. Being fairly well versed i the subject, I would consider it possible that you are incorrect. Certainly provide some verifiable evidence here before drastically changing the article. - User:Taxman 03:19, Dec 19, 2004 (UTC) OK. And thank you. It seems I am wrong on this. Stock includes all the various classes of shares, voting, preference, etc but not debt. "Stock" refers to either all the shares of a particular class or to all the particular classes of shares, depending on context. Do you agree? User:Psb777 08:33, 19 Dec 2004 (UTC) == First share? == I have always heard that the Swedish company Stora Kopparberg sold their first share in 1299, 103 years before the share of Dutch East India company was sold. Can anyone confirm this? Is Hbc the world's oldest company? No. There are a few other candidates with claims to this title and it depends on your definition of company. The (British) Royal Mint: According to the Guinness Book of Records. But this isn't really a company in the modern sense of shareholders, etc. Guinness gives no date for its establishment and its own website says nothing of the kind. It produces an Annual Report - at Parliament's behest - but does not seem to be a "company" of investors at all. Sumitomo Corporation: Founded over 400 years ago by Masatomo Sumitomo (1585-1652), Sumitomo is publicly listed and includes such well-known names such as Mazda, Sumitomo Bank, Asahi Breweries, Mitsui OSK Shipping Lines, NEC computers and Dunlop tires. The history on its website indicates that it was family held for quite a while and it is unclear when it became jointly held. Its original business was copper-mining. Stora Kopparberg: Copper has been mined in Falun, Sweden, for over 1,000 years, and two thirds of the world's copper ore was produced here during the 17th and 18th centuries. The town is home to the Falun Copper Mine and its awesome Big Pit (Stora St�ten), measuring 100 metres (328 feet) deep and 400 metres (1,310 feet) wide. The oldest document about the mine, dating from 1288, shows that it was then owned by a company, Stora Kopparberg, in which shares could be bought and sold. Nowadays known simply as "Stora," it is the world's oldest company of shareholders. In the 17th century it was the largest copper-producer in the world, but nowadays the company's interests lie mainly in the ownership of forests and the production of timber. Based on this evidence Stora Kopparberg is probably the best choice for the world's oldest company. Hbc is Canada's largest department store retailer and oldest corporation. And we are the only one of the great joint-stock trading companies of the 16th and 17th centuries that is still in business. User:-oo0(GoldTrader)0oo- ''See also:'' *[http://www.hbc.com/hbcheritage/faq/default.asp#3] Hudson's Bay Company (Hbc) == What does a company get from stock trading? == Once a company has sold a share of its company, what benefit does it get from that share being futher traded in a stock exchange? i.e. if the share price should rise, does the company receive extra money? Is a company's stock market valuation equal the amount of money that company actually has to use for capital investment? [unsigned, Pbadams, Feb 19, 2005] : The second and third questions are easily answered: "No." : The first one is trickier. The benefits are indirect. Typically, it means that further capital, if needed, can be raised on more advantageous terms: the company could issue further shares at rates more reflective of its current, higher valuation. The benefits to the ''management'' are far larger (even independent of them typically being stockholders themselves): the stockholders—the owners—are presumably happy with them, and more likely to retain them. :On the whole, though, stock valuation is of far more direct consequence to the stockholders than to the company.-- User:Jmabel | User talk:Jmabel 06:57, Feb 20, 2005 (UTC) ::I agree with Jmabel that the second and third questions are easily answered: "No". ::Lets talk a little more about the first one. A rising share price indicates that the anticipated future rate of return from the Business Operations of a company are rising. This means that the "Return on Equity" (ROE) (defined as net income/shareholder's equity is rising. Such a rising ROE is usually one of the prime objectives of setting up a company. However, this may not really answer the first question. Probably the straight answer to first question is that there is no benefit from secondary market trading of stocks for the issuing company. ::User:Sachindole 03:05, 2005 Mar 7 (UTC)

See other meanings of words starting from letter:

S

SB | SC | SD | SE | SF | SG | SH | SI | SJ | SK | SL | SM | SN | SO | SP | SR | SS | ST | SU | SW | SX | SY | SZ |

Words begining with Stock:

Stock
Stock
Stock
Stock,_Aitken_and_Waterman
Stock-Car_Racing
Stock-market_index
Stock.xchng
Stock.xchng
Stock.xchng_images
Stock/Aitken/Waterman
Stockade
Stockage
Stockard_Channing
Stockbridge
Stockbridge,_Calumet_County,_WI
Stockbridge,_Calumet_County,_Wisconsin
Stockbridge,_GA
Stockbridge,_Georgia
Stockbridge,_MA
Stockbridge,_Massachusetts
Stockbridge,_Massachusetts
Stockbridge,_MI
Stockbridge,_Michigan
Stockbridge,_Michigan
Stockbridge,_New_York
Stockbridge,_Vermont
Stockbridge,_VT
Stockbridge,_WI
Stockbridge,_Wisconsin
Stockbridge-Munsee
Stockbridge_(town),_Calumet_County,_WI
Stockbridge_(town),_Calumet_County,_Wisconsin
Stockbridge_(town),_WI
Stockbridge_(town),_Wisconsin
Stockbridge_(village),_Calumet_County,_WI
Stockbridge_(village),_Calumet_County,_Wisconsin
Stockbridge_(village),_WI
Stockbridge_(village),_Wisconsin
Stockbridge_Indians
Stockbridge_Township,_MI
Stockbridge_Township,_Michigan
Stockbroker
Stockbroking
Stockcross
Stockdale,_PA
Stockdale,_Pennsylvania
Stockdale,_Texas
Stockdale,_TX
Stockepedia
Stockertown,_PA
Stockertown,_Pennsylvania
Stockfish
Stockham,_NE
Stockham,_Nebraska
Stockhausen
Stockholder
Stockholder
Stockholders
StockholM
Stockholm
Stockholm
Stockholm
Stockholm,_Maine
Stockholm,_ME
Stockholm,_New_Jersey
Stockholm,_New_York
Stockholm,_NJ
Stockholm,_SD
Stockholm,_South_Dakota
Stockholm,_Sweden
Stockholm,_WI
Stockholm,_Wisconsin
Stockholm-Arlanda_Airport
Stockholm-Arlanda_airport
Stockholm-Bromma_Airport
Stockholm-M�laren_Region
Stockholm/Culture
Stockholm/History
Stockholm/history
Stockholm/Science
Stockholm/Tourism
Stockholmsb�rsen
Stockholmsskolan
Stockholms_Banco
Stockholms_l�n
Stockholms_medeltidsmuseum_-_Museum_of_Medieval_Stockholm
Stockholms_stadsmuseum_-_Stockholm_City_Museum
Stockholms_str�m
Stockholm_(disambiguation)
Stockholm_(town),_Pepin_County,_WI
Stockholm_(town),_Pepin_County,_Wisconsin
Stockholm_(town),_WI
Stockholm_(town),_Wisconsin
Stockholm_(village),_Pepin_County,_WI
Stockholm_(village),_Pepin_County,_Wisconsin
Stockholm_(village),_WI
Stockholm_(village),_Wisconsin
Stockholm_archipelago
Stockholm_Astronomical_Observatory
Stockholm_Bloodbath
Stockholm_Bloodbath
Stockholm_bloodbath
Stockholm_bloodbath
Stockholm_blood_bath
Stockholm_buildings
Stockholm_Cathedral
Stockholm_City
Stockholm_City_Centre
Stockholm_City_Hall
Stockholm_Codex_Aureus
Stockholm_Concert_Hall
Stockholm_Convention
Stockholm_County
Stockholm_County
Stockholm_County
Stockholm_County
Stockholm_County
Stockholm_County_Council
Stockholm_Globe_Arena
Stockholm_Institute_of_Education
Stockholm_International_Youth_Science_Seminar
Stockholm_islands
Stockholm_L�n
Stockholm_Metro
Stockholm_Municipality
Stockholm_municipal_election,_2002
Stockholm_Observatory
Stockholm_Opera_House
Stockholm_Palace
Stockholm_Pride
Stockholm_Public_Library
Stockholm_Records
Stockholm_royal_castle
Stockholm_school
Stockholm_school_(economics)
Stockholm_School_in_economics
Stockholm_School_of_Economics
Stockholm_School_of_Economics_in_Riga
Stockholm_Stock_Exchange
Stockholm_Stock_Exchange_Building
Stockholm_strom
Stockholm_Syndrome
Stockholm_syndrome
Stockholm_syndrome
Stockholm_Syndrome_(band)
Stockholm_Syndrome_(band)
Stockholm_Township,_Minnesota
Stockholm_Township,_MN
Stockholm_University
Stockholm_University
Stockholm_University_College
Stockholm_urban_area
Stockholt
Stocking
Stocking
Stockings
Stocking_fetishism
Stocking_stuffer
Stocking_stuffers
Stockland
Stockland_Green
Stockland_Supercentre_Glendale
Stockline_Plastics_factory_explosion
Stockline_Plastics_factory_explosion
Stocklund_Square
Stockma
Stockmann
Stockmar,_Christian_Friedrich,_Baron_von
Stockmarket
Stockmarket_index
Stockpile_stewardship
Stockport
Stockport,_IA
Stockport,_Iowa
Stockport,_New_York
Stockport,_OH
Stockport,_Ohio
Stockport_(borough)
Stockport_(district)
Stockport_(UK_Parliament_constituency)
Stockport_Air_Disaster
Stockport_County
Stockport_County_F.C.
Stockport_County_Football_Club
Stockport_County_Football_Team
Stockport_Metropolitan_Borough_Council
Stockport_Metropolitian_Borough_Council
Stockport_railway_station
Stockroom
Stockroom.com
Stocks
Stocks
Stocksbridge
Stocksbridge_and_Upper_Don
Stocksfield
Stocksund
Stocksy2004
Stocks_and_flows_in_economics
Stocks_and_Shares
Stocks_Mill_Windmill
Stockton
Stockton,_CA
Stockton,_California
Stockton,_California
Stockton,_England
Stockton,_IA
Stockton,_IL
Stockton,_Illinois
Stockton,_Iowa
Stockton,_Kansas
Stockton,_KS
Stockton,_Maryland
Stockton,_MD
Stockton,_Minnesota
Stockton,_Missouri
Stockton,_MN
Stockton,_MO
Stockton,_New_Jersey
Stockton,_New_South_Wales
Stockton,_New_York
Stockton,_NJ
Stockton,_UT
Stockton,_Utah
Stockton,_WI
Stockton,_Wisconsin
Stockton-On-Tees
Stockton-on-Tees
Stockton-on-Tees
Stockton-on-tees
Stockton-on-Tees_(borough)
Stockton-on-Tees_(district)
Stockton-on-Tees_UA
Stockton_&_Darlington
Stockton_&_Darlington_Railway
Stockton_(England)
Stockton_and_Darlington
Stockton_and_Darlington_Railway
Stockton_Heath
Stockton_Heath
Stockton_North_(UK_Parliament_constituency)
Stockton_on_Tees
Stockton_Ports
Stockton_Ports
Stockton_South_(UK_Parliament_constituency)
Stockton_Springs,_Maine
Stockton_Springs,_ME
Stockville,_NE
Stockville,_Nebraska
Stockwell
Stockwell
Stockwell
Stockwell
Stockwell,_London,_England
Stockwell,_London,_England
Stockwell_Day
Stockwell_Day
Stockwell_Strangler
Stockwell_tube_station
Stockwell_tube_station
Stockxchng
Stock_(disambiguation)
Stock_(firearm)
Stock_(food)
Stock_(food)
Stock_Aitken_Waterman
Stock_Aitken_Waterman
Stock_Aitken_Waterman/songs
Stock_and_flow
Stock_and_station_agent
Stock_Broker
Stock_broker
Stock_broker
Stock_Brokerage
Stock_brokerage
Stock_brokers
Stock_buyback
Stock_car
Stock_cars
Stock_car_(rail)
Stock_car_(rail)
Stock_car_(rail)/to_do
Stock_car_racing
Stock_car_racing
Stock_car_racing
Stock_character
Stock_character
Stock_characters
Stock_characters
Stock_Code
Stock_dividend
Stock_Dove
Stock_dove
Stock_duration
Stock_Exchange
Stock_Exchange
Stock_exchange
Stock_exchange
Stock_exchanges
Stock_exchanges
Stock_Exchange_Executive_Council_(SEEC)
Stock_exchange_index
Stock_Exchange_of_Hong_Kong
Stock_Exchange_of_Hong_Kong_Limited
Stock_Exchange_of_Singapore
Stock_Exchange_of_Thailand
Stock_Exchange_Tower
Stock_farming
Stock_footage
Stock_Generation
Stock_holder
Stock_image
Stock_index
Stock_Island,_FL
Stock_Island,_Florida
Stock_Issues
Stock_Keeping_Unit
Stock_marke
Stock_marked_downturn_of_2002
Stock_Market
Stock_market
Stock_market
Stock_market
Stock_markets
Stock_markets_in_the_United_States
Stock_markets_in_the_United_States
Stock_market_bubble
Stock_market_crash
Stock_market_crash
Stock_market_crashes
Stock_market_crash_1929
Stock_Market_Crash_of_1929
Stock_market_crash_of_1929
Stock_Market_Crash_of_2002
Stock_Market_Crash_of_2002
Stock_market_crash_of_2002
Stock_market_crash_of_2002
Stock_Market_Downturn_of_2002
Stock_market_downturn_of_2002
Stock_market_downturn_of_2002
Stock_market_index
Stock_market_index
Stock_Market_Indices
Stock_market_indices
Stock_option
Stock_option
Stock_options
Stock_photography
Stock_photography
Stock_photography
Stock_photos
Stock_phrase
Stock_phrase
Stock_Pigeon
Stock_Pot_Inn
Stock_profile
Stock_show
Stock_solution
Stock_sound_effects
Stock_split
Stock_swap
Stock_symbol
Stock_symbol
Stock_Ticker
Stock_ticker
Stock_ticker_machine
Stock_Transportation_Ltd
Stock_valuation
Stock_vs._flow_(economics)
Stock_whip