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 Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.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:
“Death and life were not
Till man made up the whole,
Made lock, stock and barrel
Out of his bitter soul,”
—William Butler Yeats (1865–1939)
“I’d rather I were dead and gone,
And my body laid in grave,
Ere a rusty stock o coal-black smith
My maidenhead should have.”
—Unknown. The Twa Magicians (l. 17–20)
“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)