Define: Stock

UK Accounting Glossary

Definition: Stock


Quick Summary of Stock


A word with two different meanings. It may be used to describe an inventory of goods held for resale or for use in business. It may also be used to describe shares in the ownership of a company. The meaning will usually be obvious from the way in which the word is used.



What is the dictionary definition of Stock?

Dictionary Definition


  1. A store or supply
  2. finance The capital raised by a company through the issue of shares. The total of shares held by an individual shareholder.
  3. The raw material from which things are made; feedstock.

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Full Definition of Stock


Stock is a security issued in the form of shares that represent ownership interests in a company. There is both common stock (often simply called “stock,” “shares,” or “equity”) and preferred stock. Common stockholders elect the company’s board of directors and actively participate in the company’s success (or failure) through a rising (or falling) stock price. Common stockholders may also receive dividends, provided the company is profitable, obligations to commercial creditors and bondholders have been met, and the board sees fit to declare them. In the event of liquidation, however, common stockholders have no right to assets until all other obligations of the firm have been met. Common stockholders may have “pre-emptive” rights to maintain their percentage ownership of the firm. For example, a common stockholder with 100 of the 1,000 outstanding shares of the company, or 10%, may (or may not) have the right to buy 10 shares of a new issue of 100 shares. Preferred stockholders, in turn, are generally guaranteed dividends at a fixed rate, but they have limited voting rights.


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Synonyms For Stock


store, supply, inventory, reserve, stockpile


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/stock/
Modern Language Association (MLA):
Stock. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 22, 2020 https://payrollheaven.com/define/stock/.
Chicago Manual of Style (CMS):
Stock. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/stock/ (accessed: February 22, 2020).
American Psychological Association (APA):
Stock. PayrollHeaven.com. Retrieved February 22, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/stock/

Definition Sources


Definitions for 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: 23rd December 2018.