Equity Security

An Equity Security is a financial security that is based on a share of a for-profit organization.

• AKA: Corporate Stock, Capital Stock, For-Profit Organization Share.
• Context:
  • It can be held by an Organization Shareholder.
  • It can range from being a Common Stock to being a Preferred Stock.
  • It can range from being a Non-Tradable Stock to being a Tradable Stock.
  • It can result in a Stock Dividend Payment.
  • …
• Example(s):
  • a Common Stock.
  • …
• Counter-Example(s):
  • a Debt Security.
  • a Derivative Security.
• See: Intangible Asset, Financial Trade, Equity Valuation, Stockholder, Capital Depreciation.

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References

2014

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Stock Retrieved:2014-6-1.
  • 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 Stockholders' equity cannot be withdrawn from the company in a way that is intended to be detrimental to the company's creditors.

2013

• http://www.investopedia.com/terms/s/security.asp
  • QUOTE: … Equities represent ownership interest held by shareholders in a corporation, such as a stock. Unlike holders of debt securities who generally receive only interest and the repayment of the principal, holders of equity securities are able to profit from capital gains.

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