Shares and Securities
A share of stock represents partial ownership in a company. Depending on the terms under which the stock was issued, stockholders can generally buy and sell their holdings for a potential profit, receive money from the company in the form of dividend payments if the company makes them and, often, vote in shareholder meetings to elect a corporate board or consider other critical questions. A share is generally the unit in which stock is sold, and multiple shares of the same type of stock in the same company are essentially interchangeable.
Stocks in many companies are available to buy and sell through common markets. A company issuing stock generally issues a document called a prospectus outlining exactly what share ownership delivers.
Stocks in many companies are available to buy and sell through common markets. A company issuing stock generally issues a document called a prospectus outlining exactly what share ownership delivers.
Stock is just one type of what the finance world calls securities. These are essentially anything that represent an ownership, equity or interest in a company or the right to collect on its debt. Bonds, which represent loans, are another common type of security. Other more esoteric securities include warrants and options. Securities are generally regulated by the Securities and Exchange Commission and often by state regulators as well, so it can have a legal significance whether something is regarded as a security
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