Duhaime's Law Dictionary


Stock Definition:

Available merchandise or the aggregate of a person's share holdings in a corporation.

Related Terms: Share, Shareholder agreement, Securities, Bond, Par Value Shares, Watered Stock

A share of ownership in a corporation.

In securities law, stock is the aggregate of a person's ownership in a corporation, usually expressed in shares, common shares or preferred shares or as they may be otherwise named.

Bouvier wrote that stock is:

"A right to partake, according to the amount of the party's subscription, of the surplus profits obtained from the use and disposal of the capital stock of the company. The capital stock of a corporation is that money which is put into a fund by those who, by subscription therefor, become members of the corporate body."

For merchants, the term stock also refers to their available merchandise.


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