Keyword Analysis & Research: stocks definition law

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What is the legal definition of stock?

Legal Definition of stock. 1 a : the equipment, materials, or supplies of a business. b : a store or supply accumulated especially : the inventory of the goods of a merchant or manufacturer.

What are stocks and shares?

When stocks refer to shares, it may refer to any type of security that represents ownership of a business and signifies a claim on part of the company’s assets and earnings – either common or preferred shares. The owner of common stock (common shares) is entitled to receive dividends and to vote at shareholders’ meetings.

What is stock ownership?

Stock, also known as equity, represents ownership interests in corporations. Whether you own one, 100 or 100 million shares of stock in a company, you're an owner of the company.

What is common stock and how does it work?

Common stock is an investment security which represents ownership in a company. You may hear a friend or relative state they own stock (commonly referred to as shares) of a particular company. They are referring to common stock.


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