common stock
Basic corporate equity
Common stock is the basic form of ownership in a corporation, entitling holders to vote on company matters and receive dividends when declared.
Unlike preferred stock, common stockholders stand last in line for assets if the company liquidates, but they capture unlimited upside if the company thrives.
Most publicly traded shares are common stock: She owns 500 shares of common stock in Apple.
Equity owner in corporation
- stockholderOwner of company shares
- voting rightsEntitlement to elect officials
- equity stakeOwnership portion in enterprise
- proxyAuthorized substitute
annual meeting · board of directors · corporate governance · controlling interest · retail investor · capital allocation · stakeholder · dilution
Aggregate equity value outstanding
- share priceCost per equity unit
- earnings per shareProfit allocated per stock
- price-to-earningsShare price divided by earnings
- book valueAsset minus accumulated depreciation
par value · intrinsic value · blue chip · small-cap · float · outstanding shares · market value · undervalued
Mutual giving and receiving
- NYSELargest equities market
- NASDAQElectronic securities exchange
- tickerInformal term for heart
- quoteRepeated words from another
bid · ask · volume · liquidity · volatility · order · buy · sell
Distribution as price percentage
- payoutMoney distributed to recipient
- distributionAllocation across recipients
- quarterly dividendProfit share paid seasonally
- annual dividendPeriodic shareholder earnings disbursement
cash dividend · reinvestment · payment date · retained earnings
First public stock offering
- offeringSomething presented or given
- prospectusFormal investment disclosure document
- underwriterOne who assumes financial risk
- listingRecorded item in catalog
shareholder
Equity owner in corporation
- stockholderOwner of company shares
- voting rightsEntitlement to elect officials
- equity stakeOwnership portion in enterprise
proxy · annual meeting · board of directors · corporate governance · controlling interest · retail investor · capital allocation · stakeholder · dilution · tender offer
market capitalization
Aggregate equity value outstanding
- share priceCost per equity unit
- earnings per shareProfit allocated per stock
- price-to-earningsShare price divided by earnings
book value · par value · intrinsic value · blue chip · small-cap · float · outstanding shares · market value · undervalued · overvalued
exchange
Mutual giving and receiving
quote · bid · ask · volume · liquidity · volatility · order · buy · sell · shorting
dividend yield
Distribution as price percentage
- payoutMoney distributed to recipient
- distributionAllocation across recipients
- quarterly dividendProfit share paid seasonally
annual dividend · cash dividend · reinvestment · payment date · retained earnings
IPO
First public stock offering
- offeringSomething presented or given
- prospectusFormal investment disclosure document
- underwriterOne who assumes financial risk
listing · issuer · registration · SEC filing · reverse split
- shareholder rightsshareholder rights, voting power, proxy voting, amendment rights, first refusal
- stock typesvoting shares, outstanding shares, Series A
- assetsproperty, cash, money, investments, bank accounts
- accounting termsassets, cash, expenses, equity, retained earnings
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- investmentsbonds, stocks, securities, investment, equities
common stockbonds
Ties that unite
corporate bonds · debentures · corporate debt · secured debt · loans
common stocktreasury bonds
Government-issued debt securities
government securities · savings bonds · certificates of deposit
common, stock, uncommon, commonplace, commune, communal, commons, uncommonly, commoner