What is corporate stock?

Corporate stock refers to a type of ownership in a legal business entity, such as an C-corporation. Corporations typically issue stock to raise money from investors to fund capital expenditures or future growth. Typically corporate stock is broken up into common or preferred stock.

Why do corporations issue stock?

Corporations issue stock to raise money for growth and expansion. To raise money, corporations will issue stock by selling off a percentage of profits in a company. Issuing stock can also be referred to as equity financing, because the shareholder gives the company money in exchange for a portion of voting rights and profits of the company.

How do stock corporations work?

Learn how stock corporations work through an example, along with the different types of stock corporations and their pros and cons to determine whether they're the right type of business entity for your venture. Stock corporations are for-profit organizations that issue stock to shareholders to raise capital. What Are Stock Corporations?

What is the difference between stock and shares?

Stock is a more general term, used to refer to the financial instruments a company issues, while shares are what you actually buy. Shares represent units of ownership in a corporation or financial asset owned by investors who exchange capital in return for these units.