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The fundamental element of the equity section of the balance sheet. Different forms include Common Stock, Preferred Stock, Treasury Stock and many others.

Business Barriers


No business is instantaneously successful.   There are multiple obstacles referred to as barriers all owners and managers have to overcome.   There are three primary groups of barriers for every business out there.   They include capital [...]

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 [...]

Treasury Stock


Those corporations doing well and flush with cash sometimes buy back stock from their investors. Once purchased back by the company the stock is called treasury stock. In large corporations the buy back often involves a small percentage of [...]

Penny Stocks- Introduction


Those small publicly traded businesses with share prices of less than $5 and capitalization of less than $50 million are referred to as penny stocks. Penny stocks may trade on any of the major stock exchanges. For investors the risk is generally [...]

Shareholder Dynamics in Small Business


The majority of small businesses are owned by a single individual.  An additional pool is family owned or controlled.  The balance usually involves friends or relatives that are passive in ownership.  These forms of ownership create some [...]

Price to Earnings Ratio – Introduction and Interpretation


Price to Earnings Ratio (P/E) is an analysis tool used to evaluate publicly traded stock.  It is a simple mathematical formula relating the stock price in the market against the prior 12 months of earnings.  The following is the formula:  Price [...]

Crowdfunding in Small Business


The process of collecting a large pool of investors, each contributing or investing a small amount of dollars for a highly focused project is referred to as crowdfunding.  The crowd is financing the project or goal.  This is very similar to how [...]



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 – [...]
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