The capital stock (or stock) of an incorporated business constitutes the equity stake of its owners. It represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt. Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.
Read more about Stock: Shares, Types of Stock, Stock Derivatives, History, Shareholder, Application, Trading
Famous quotes containing the word stock:
“The freedom to make a fortune on the Stock Exchange has been made to sound more alluring than freedom of speech.”
—John Mortimer (b. 1923)
“I consider that a man’s brain originally is like a little empty attic, and you have to stock it with such furniture as you choose.”
—Sir Arthur Conan Doyle (1859–1930)
“I have, thanks to my travels, added to my stock all the superstitions of other countries. I know them all now, and in any critical moment of my life, they all rise up in armed legions for or against me.”
—Sarah Bernhardt (1844–1923)