What Is Stock?

Certificates issued by a corporation legally certifying that the holder holds ownership of a certain number of shares in such corporation.

What Is Common Stock?

Common stock, general or ordinary stock differs from preferred stock, because it has no preference as to dividends or assets. When a corporation issues preferred stock it is necessary to give the ordinary stock the title of "common" to distinguish it from the "preferred." When there is no issue of preferred, then the ordinary stock is not referred to as "common," but is known simply as capital stock. Sometimes there are different kinds of common stock or ordinary stock, particularly English issues. A portion of the issue may be called "deferred" because no dividend will be paid until a prior portion has received a dividend at a fixed rate. It is the custom in such cases to designate a portion of the issue as "A stock" and as "B stock" to distinguish the two classes.

What Is A Guaranteed Stock?

A stock having its dividends guaranteed by another company than the one issuing the stock. Railroads frequently guarantee dividends on the stock of leased roads.

What Is Half Stock?

Stock issued in certificates of the par value of $50, instead of the usual $100. Delaware, Lackawanna & Western, Reading, Pennsylvania and American Tobacco are examples of "half stock."

What Is Preferred Stock?

A stock that shares in the surplus earnings or dividends of a corporation before the common stock of a corporation can participate. Some stock issues are arranged in first and second "preferred" and "common" classes, but ordinarily, only "preferred" and "common" stock are specified in the capitalization of a corporation.

What Is Spilling Stock?

When stocks are dumped on the market from necessity, to break prices or take profits, the act is called "spilling stock."

What Is A Trustee Stock?

The highest class stock issued, such as may be passed on and authorized by law in which trustees may invest their trust funds.

What Are Unlisted Stocks?

They are stocks not listed or quoted on the quotation board of the Stock Exchange. They are classified in what is called the Unlisted Department of the New York Stock Exchange.

What Is Watered Stock?

When the capital stock is increased without an equal increase in assets, the operation is termed "watering stocks."

How Should A Stock Certificate Be Endorsed?

If you sell or transfer your stock, notice particularly how the certificate is filled in on its face. If it reads John Smith, it should be endorsed John Smith on the back of the certificate when it is transferred to another party. Do not sign J. Smith or any other way except "John Smith." Fill in the date and have it witnessed, then send it to your broker for transfer. He will guarantee your signature.