1) " Stock" -- As it applies to Japan Stock See Stack (disambiguation) for othermeanings of the term Stokk A stock, also referred to as a share, is commonly a share of ownership in a corporation. Contents 1 History 2 Ownership 3 Shareholder rights 4 Means of financing 5 Trading 6 Types 7 Derivatives 8 See also 9 References 10 External links History The first company that issued shares is considered to be the StoraKopparberg, in the 13th century. Ownership The owners and financial backers of a company may want additional capital toinvest in new projects within the company. If they were to sell the company it would represent a loss of control over thecompany. Alternatively, by selling shares, they can sell part or all of the company to many part-owners. The purchase of one shareentitles the owner of that share to literally a share in the ownership of the company, including the right to a fraction of the assets of the company, a fraction of the decision-making power, and potentially afraction of the profits, which the company may issue as dividends. However, theoriginal owners of the company often still have control of the company, and can use the money paid for the shares to grow thecompany.In the common case, where there are thousands of shareholders, it is impractical to have all of them making the dailydecisions required in the running of a company. Thus, the shareholders will use their shares as votes in the election of membersof the board of directors of the company. However, the choicesare usually nominated by insiders or the board of the directors themselves, which over time has led to most of the top executivesbeing on each other's boards. Each share constitutes one vote (except in a co-operative society where every member gets one vote regardless of the number of shares they hold). Thus, ifone shareholder owns more than half the shares, they can out-vote everyone...
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