common stocks

A security

Common stock

Common stock

A security that represents ownership in a corporation

One unit of a stock is called?

A share

Capital Appreciation

A rise in the market price of an asset

Dividend

A distribution of the earning of a corporations

Forms of dividends

Cash

Stocks

Property

Common stocks can be classified as

Authorized

Issued

Outstanding

Treasury

Authorized stock

The corporate specifies the number of shares the company is authorized to issue

Issue stock

An authorized stock that has been sold to investors

Unused stocks

Do not carry the rights of issue shares and is not considered in determining a company‘s value (capitalization)

outstanding stock

Includes all shares that a company has issued that are in the hands of investors.

Treasury stock

1. A stock a corporation has issued and then later bought back.

2. Does not carry the rights of a standing common shares.

3. Not considered in determining the company’s value.

Types of common

Large cap stock stocks

Mid cap stocks

Small cap stocks

large cap stocks

• Familiar -well established companies

• Also called Blue-chip stocks

• Capitalization excess of $10 billion

Mid-cap stocks

• Large, but not as huge as the large cap companies

• Market capitalization from 2 billions to 10 billion

Small cap stock

• Large enough to be listed on national exchanges.

• Produce few dividend

• Capitalization of 250 million to 2 billion