Basic characteristics | SIE Common stock

Common Stock

Represents ownership in a company; it is called an equity security.

Issuer

An organization that distributes and sells securities to investors.

Going Long

Finance jargon for purchasing ownership in a security.

Outstanding Shares

The number of shares held by the company’s shareholders.

Equity

Formal term for ownership in a company.

Capital Appreciation

Increase in stock price resulting in a profit when sold; also called growth.

Cash Dividends

Profit that a company distributes to its shareholders.

Retained Earnings

Profits retained by a company for expansion and operations rather than being paid out as dividends.

Cyclical Stock

Shares that perform well during economic expansion and decline during economic contractions.

Defensive Stock

Stocks that tend to hold their value through all business cycle phases, providing essential goods and services.