A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
- Stock ExchangeAn organized marketplace, such as the NYSE or Nasdaq, where stocks and other securities are traded.
- ShareA single unit of ownership in a company; owning shares means you own a piece of that business.
- ProspectusA required document that describes a fund or investment's goals, costs, risks, and holdings before you buy.
- Market CapitalizationThe total value of a company's shares, found by multiplying the share price by the number of shares outstanding.
- SEC (Securities and Exchange Commission)The U.S. agency that regulates securities markets and works to protect investors from fraud.
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Plain-English education — not personalized legal, tax, or investment advice.