Term of the Day: Stock

An instrument that signifies an ownership position (called equity)
in a corporation, and represents a claim on its proportional share
in the corporation's assets and profits. Ownership in the company
is determined by the number of shares a person owns divided by the
total number of shares outstanding. For example, if a company has
1000 shares of stock outstanding and a person owns 50 of them, then
he/she owns 5% of the company. Most stock also provides voting
rights, which give shareholders a proportional vote in certain
corporate decisions. Only a certain type of company called a
corporation has stock; other types of companies such as sole
proprietorships and limited partnerships do not issue stock.
also called equity or equity securities or corporate stock.