Suggest a new Definition

    Proposed definitions will be considered for inclusion in the Economictimes.com

    Equity

    What is 'Stocks'


    Definition: A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand, refers to the stock certificate of a particular company. Holding a particular company's share makes you a shareholder.

    Description: Stocks are of two types—common and preferred. The difference is while the holder of the former has voting rights that can be exercised in corporate decisions, the later doesn't. However, preferred shareholders are legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.

    There is also something called 'convertible preferred stock'. This is basically a preferred stock with an option of converting into a fixed number of common shares, usually any time after a predetermined date.


    Read More News on

      Related News

      • Real estate growth strongest in greater Mumbai region, says Mahantesh SabaradThe Mumbai real estate sector, particularly in the greater MMR region like Thane, has thrived in the past two years, outpacing traditional growth markets. Companies like Raymond, Oberoi Realty, and Godrej, with investments in this area, are poised for strong performance amidst upcoming metro projects.
      • Brokerage View: Chemical stocks ripe for fresh up-cycle“These stocks have either reversed from a long-term support or made a multiyear breakout retest which make them quite safe as compared to the stocks which are witnessing a breakout which can fail if the markets correct,” said InCred’s VP, Gaurav Bissa, in a client note.
      • Nvidia short sellers make $5 billion from three-day selloff, shaws dataNvidia short sellers have raked in nearly $5 billion in paper profits from the AI chip designer's sharp selloff over the past three sessions, according to data analytics firm Ortex Technologies.
      • Japan's Nikkei closes at highest since mid-April as value shares rally​Japan's Nikkei share average rose on Tuesday to its highest close in more than two months, as investors shifted focus to value stocks from semiconductor and other high-tech, while a weaker yen also lent support to export-related shares.
      • Deven Choksey on one sub-sector to be bullish on in run up to Budget​Maybe for buying the deep value investment opportunity, we will have to see a correction in the market. If at all it comes, that would be a good opportunity to buy into it. But otherwise, I maintain that I think, yes, the fundamental is not doubted. The current valuations are not comforting.
      • Sebi weighs tighter checks for stocks at F&O entry gateIn its June 8 consultation paper, Sebi had sought feedback from market participants for its plan to revise the eligibility criteria for stocks to be a part of the futures and options (F&O) segment. The regulator wants stocks that are part of the derivatives market to be more liquid and traded by a wide set of market participants to prevent manipulation and lower risks to the system.
      • Sebi suspects front-running at Quant MF, launches probeQuant Mutual Fund is one of the fastest-growing funds with 80 lakh folios, small-cap scheme returned 68% in the last year, managing assets worth ₹93,000 crore.
      • Indian companies have made a comeback. Will MNCs be able to do it ? 7 MNC pharma stocks with upside potential of up to 21%While they still trade at premium valuations, they have not created wealth for shareholders. The fact is an age-old theory that just having a MNC stock in your portfolio is an assurance of growth and return no longer holds true. There was a time when having MNC stock, irrespective of the sector it was from, was a must have in one's portfolio. The reason: liberal at giving bonuses, dividend payments were good and given the fact some of them actually owned the best of the brands which had seen a secular growth due to which they were also able to deliver decent returns to shareholders. But after the IT bull of 2000, as a new set of Indian companies took the centerstage, a number of MNCs stocks lost their shine at least on the street. In the last few years, a number of pharma companies have been putting their house in order, either due to global merger and selling a part of Indian business to focus more on core products.
      • Why Rajat Sharma prefers these 3 sectors to banks nowKeep an eye on fertilisers, gaming, and NBFC stocks more than banking, says Rajat Sharma of Sana Securities because in the GST meeting, the talk has been to do away with the middle GST slab and either have a 5% or an 18% slab or at least reduce some taxation.
      • Oil hits seven-week high on demand hopes, war jittersOil prices hit seven-week highs on Wednesday as summer demand optimism and concerns over escalating conflicts offset an industry report that said U.S. crude inventories unexpectedly rose.
      Load More
      The Economic Times