User:Buster7/Sandbox-Stock Market terms

Terms edit

  • Stocks, capital stock, or sometimes interchangeably with shares consist of all the shares that exist for a given Company. In English, the word "stocks" is also used to refer to shares. A stock is one of the parts or shares that the value of a company is divided into, that people can buy.
  • Share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company which may not reflect the market value of those shares. In financial markets, a share (sometimes referred to as stock or equity) is a unit of equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts.
  • Share capital refers to all of the shares of an enterprise. The owner of shares in a company is a shareholder (or stockholder) of the corporation.
  • Yield refers to the earnings generated and realized on an investment over a particular period of time. It's expressed as a percentage based on the invested amount, current market value, or face value of the security. Yield is a measure of cash flow that an investor gets on the amount invested in a security. It is mostly computed on an annual basis, though other variations like quarterly and monthly yields are also used. Yield should not be confused with total return, which is a more comprehensive measure of return on investment.
  • Dividend is the distribution of a company's earnings to its shareholders and is determined by the company's board of directors. Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock.
  • Dividend yield is the dividend per share and is expressed as dividend/price as a percentage of a company's share price, such as 2.5%.