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Common Stock

An equity section of the balance sheet item, it refers to the most fundamental form of ownership of a company. Stock is sold to raise capital for business operations and fixed asset purchases.

Stock – Fundamentals of Ownership and Control


The basic principle of stock is an ownership right of a company based on the percentage of outstanding shares in possession.   It is essentially a mutual understanding between shareholders that each investor’s percentage of ownership is [...]

Retained Earnings – How it Works


In the equity section of the balance sheet there is an account that tallies the lifetime earnings net of dividends for the company.  The value identifies the total amount retained by the company for operational purposes.  This account is referred [...]



The one single term mostly equated to capitalism is ‘Stock’.  When a business is incorporated, stock is the core medium of exchange for the investment.  The company issues a certificate referred to as stock in exchange for the investment – [...]

Book Value – Definition and Usage


There are several definitions associated with the term ‘Book Value’ and depending on the context of its use, determines the correct definition and proper use.  The three primary uses of the term are as follows: Stock, Corporate Value or Balance [...]

Common Stock – Definition


A document indicating ownership in a corporation is often referred to as common stock.   It identifies an equity position in a business.  The document or certificate is commonly referred to as a security and provides certain rights to the holder [...]

What is an S-Corporation?


Within the family of corporations, the Internal Revenue Service (IRS) grants tax free status to S-Corporations.  It is strictly an IRS term.  In the IRS code, there are several subchapters pertaining to corporations; Subchapter S identifies and [...]