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 Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.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:
“After supper she got out her book and learned me about Moses and the Bulrushers; and I was in a sweat to find out all about him; but by and by she let it out that Moses had been dead a considerable long time; so then I didn’t care no more about him; because I don’t take no stock in dead people.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“In the case of our main stock of well-worn predicates, I submit that the judgment of projectibility has derived from the habitual projection, rather than the habitual projection from the judgment of projectibility. The reason why only the right predicates happen so luckily to have become well entrenched is just that the well entrenched predicates have thereby become the right ones.”
—Nelson Goodman (b. 1906)
“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)