Description: How to Value A High Flying Growth Stock like Roblox, Trade Tracker: Jason Snipe trims Nvidia, MRF: India's High-Flying Stock Adventure! | MRF Share Price #shorts, What to do if you own a high flying stock | PreMarket Prep
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The stock (also capital stock ) of a corporation constitutes the equity stake of its owners. It represents the residual assets of the company that would be due to stockholders after discharge of all senior claims such as secured and unsecured debt . Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.
The stock of a corporation is partitioned into shares , the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the existing shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value , which is a nominal accounting value used to represent the equity on the balance sheet of the corporation. In other jurisdictions, however, shares of stock may be issued without associated par value.
Shares represent a fraction of ownership in a business. A business may declare different types ( classes ) of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate . A stock certificate is a legal document that specifies the amount of shares owned by the shareholder , and other specifics of the shares, such as the par value, if any, or the class of the shares.