Posted in Finance, Accounting and Economics Terms, Total Reads: 697
Stock is another word for share or equity. It is defined as the stake or ownership of the investors in a company. In other words, this investor has a claim on a part of the company’s earnings and assets. This claim is proportional to the percentage of the total shares of the company he holds. Value of the stock held by a stockholder is obtained by multiplying the number of shares he holds multiplied by the share price.