Stock
Stock is a financial security representing an ownership interest in a company, often divided into shares that may confer economic or governance rights.
Investing for Programmers
An equity investment is an investment that acquires an ownership interest in a company or other entity.
- How it is used
- Frames company ownership as an investment and as a balance-sheet measure for evaluating public companies and start-ups.
- How deep it goes
- Defines public and private equity, explains shares, dividends, liquidity, and liabilities, but stops short of valuation mechanics.
- Examples
- Uses Apple ownership and dividends, start-up funding, the assets equation, and debt-to-equity comparisons for LiDAR companies.
- What you can do after
- Evaluate equity positions by comparing ownership, income, growth potential, liquidity, liabilities, inflation, and alternative returns.
Tech Startup Toolkit
Stock is an ownership interest in a company represented by shares that may confer economic or governance rights.
- How it is used
- Explains ownership stakes, financing dilution, and employee equity decisions.
- How deep it goes
- Traces share creation through changing ownership and value, then distinguishes stock options from shares.
- Examples
- Uses an Acme share-count example and employee option terms to make percentage ownership and dilution concrete.
- What you can do after
- Evaluate how financing changes ownership percentage and interpret the equity terms in an employee offer.
Related concepts
- bondcontrasts with · A bond is a debt security through which an issuer borrows principal and typically promises repayment with interest.
- exchange-traded fundcontrasts with · An exchange-traded fund is a pooled investment fund whose shares trade on a stock exchange and typically track an index, asset class, or investment strategy.
- dilutionproduces · Dilution is the reduction in an existing shareholder's ownership proportion or claim per share caused by issuing additional shares.
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