What is the meaning of Stock? Concept, Definition of Stock


Definitions and concepts of Stock

Definition of Stock

The capital stock (or stock) of a company constitutes participation in the capital of its owners. Represents the residual assets of the company which would be due to shareholders after the discharge of all preferential loans such as secured and unsecured debt. Stockholders may not be removed from the company in a way that is intended to be detrimental to the creditors of the company.
The shares of a corporation is divided into shares, the total number of those presented at the time of the creation of companies. Additional actions may subsequently be authorized by issued by the company and existing shareholders. In some jurisdictions, each action has a certain value declared a couple, which is a nominal accounting value used to represent the total equity in the balance sheet of the Corporation. In other jurisdictions, however, shares may be issued is without associated nominal value.
The shares represent a fraction of the property into a business. A company can declare different types (classes) of actions, each one. You have distinctive rules of property, privileges, or value of shares ownership of the actions can be documented through the issuance of a certificate of shares. A shares certificate is a legal document that specifies the amount of shares held by the shareholders, and other specific actions, such as the nominal value, where applicable, or of the class of shares.
In the United Kingdom, Republic of Ireland, South Africa and Australia, the actions also may refer to completely different financial instruments, such as government bonds or, less frequently, to all kinds of securities.
Stock typically takes the form of shares of either common shares or preferred shares. As the unit of ownership, social capital usually carry voting rights that can be exercised in business decisions. Preferred stock differs from ordinary shares that typically do not enjoy voting rights but has the legal right to receive a certain level of payments of dividends before dividends can be granted to the other shareholders. [3] [4] convertible preferred stock shares preferred is that it includes an option for the holder to convert preferred shares into a fixed number of common shares, usually anytime after a certain date. The actions of these actions are called "convertible preferred shares" (or "convertible preferred shares" in the United Kingdom).
New issue of capital may have certain United legal clauses which differentiate them from previous editions of the CA. Some ordinary shares can be issued without the typical voting right, for example, or some shares may have special rights unique to them and issued only to certain parties. Often, new issues that have not been recorded in a stock market governing body can be restricted from resale for certain periods of time.
Preference shares can be hybrid by having the qualities of the voting rights of shares common and fixed income bonds. They also have preference in payment of dividends on ordinary shares and also preference were given at the time of the liquidation on ordinary shares. They have other characteristics of accumulation of dividends. In addition, preferential shares usually comes with a the letter designation at the end of security, for example, Berkshire Hathaway-class "b" sell under stock ticker BRK.B, while the "a" class of ORION DHC, Inc will sell under the symbol OODHA until the company dropped "the A create ticker OODH for their"common actions"only designation". This extra letter does not mean that there is no exclusive right for shareholders, but it lets investors know that actions deemed to do so, however, these rights or privileges can change according to the decisions taken by the respective company.

Concept of Stock

The word "stock" is English and could be translated in Spanish, and in the business sector, such as existence, i.e. the quantity of goods, tools prima omateria that remains stored as spare, to compensate to them that are in use or for sale, if necessary replace them. For example, may have in stock, machines for if any breaks and non-stop production until they are repaired, boxes for packaging, or demand goods destined for sale if it grows and takes the replenishment, and not thus lose the possibility of marketing the product by not having enough. The stock consists in the inventories of the company, detailing along with entry and exit of goods movements.
In the stock file, in general computerized must consign data items stored as your code, number and physical location where. Of course companies that own stock are those engaged in the marketing of goods and not services.
To have stock you need capital that allow investing future being a forecast that does not current earnings. However, in times of inflation is a good resource to increase profits, because if you expect to sell what you have to buy at that time, products will be more expensive, and perhaps we have sold them at a price that now costs us the goods. It has the risk that if merman sales can not recover the investment in the short term. Another risk is generated if the stored goods have expiration date.