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FindLaw Legal Dictionary

The FindLaw Legal Dictionary -- free access to over 8260 definitions of legal terms. Search for a definition or browse our legal glossaries.



stock n

1 a : the equipment, materials, or supplies of a business
b : a store or supply accumulated
: the inventory of the goods of a merchant or manufacturer
2 : the ownership element in a corporation usually divided into shares and represented by transferable certificates
: the certificate evidencing ownership of one or more shares of stock

capital stock
1 : the stock that a corporation may issue under its charter including both common and preferred stock
2 : the outstanding shares of a joint stock company considered as an aggregate
3 : capitalization

common stock
: a class of stock whose holders share in company profits (as through dividends) on a pro rata basis, may vote for directors and on important matters such as mergers, and may have limited access to information not publicly available

cumulative preferred stock
: preferred stock whose holders are entitled to the payment of cumulative dividends as well as current dividends before common stockholders are paid

growth stock
: stock issued by a growth company

margin stock
: stock that may be purchased in a margin account

no-par value stock
: stock issued with no par value which may be carried for corporate accounting purposes as part of the capital stock or as part of the capital surplus to the extent allowed by law called also no-par stock

pen·ny stock
: the stock of a small company not listed on a major exchange and traditionally selling at less than a dollar a share

preferred stock
: a class of corporate stock whose holders are guaranteed payment of dividends and a share of asset distribution before the holders of common stock but are usually denied voting rights

Treasury stock
: stock that is reacquired and held by the issuing company (as to increase the market value of traded shares)

voting stock
: stock (as common stock) entitling the holder to vote in matters of corporate governance

wa·tered stock
: stock issued with a par value greater than the value of the underlying assets

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.

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