Define: Corporate Stock

UK Accounting Glossary

Definition: Corporate Stock



Advertisement



Full Definition of Corporate Stock


Corporate stock is the capital or monetary fund that a company raises through the sale of shares. Shares of corporate stock define an ownership entitlement, called an equity position, and represent a proportional claim on a company’s assets and future earnings. Ownership is determined by the number of shares of corporate stock a person owns divided by the total number of shares of corporate stock outstanding. The value of corporate stock depends on the value, profitability and future potential of the issuing corporation. Changing market conditions also dictate what purchasers are willing to pay for corporate stock. There are two primary types of corporate stock: common corporate stock and preferred corporate stock. Each type of corporate stock offers a shareholder certain rights and limitations. A corporate stock certificate is the written instrument that is usually issued to a shareholder. An owner of corporate stock may be entitled to voting rights and participation in the management of the corporation. Only corporations issue corporate stock. Other business forms such as a sole proprietorship or limited liability entity do not issue corporate stock. Corporate stock differs from other securities, such as notes and bonds, as these do not offer or represent ownership interest.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/corporate-stock/
Modern Language Association (MLA):
Corporate Stock. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 19, 2020 https://payrollheaven.com/define/corporate-stock/.
Chicago Manual of Style (CMS):
Corporate Stock. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/corporate-stock/ (accessed: February 19, 2020).
American Psychological Association (APA):
Corporate Stock. PayrollHeaven.com. Retrieved February 19, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/corporate-stock/

Definition Sources


Definitions for Corporate Stock are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 4th February 2020.