Stock Investing Zone

What is a business’s stock? Also known as capital stock, this is the representation of the original capital which was paid or invested by the founders when the business was first established. This amount acts as the security for the creditors of that business. It is important to remember that a company’s stock is different than the property or assets of its business because the stock remains constant while the assets and property value can change over time.

The stock of a business is divided into shares. At the time that the business is established the number or shares is declared. Knowing the total amount of money which was initially invested and the total number of shares created, and then each share has a value, known as its par value. According to where a business is located, the par value can either be the minimum amount of money which a company can issue and sell shares for; or in other places the shares have no connection to the par value, and the shares are called non-par stock and their value are a percentage or fraction of ownership in a business.