The New York Stock Exchange is a world wide recognized stock clearing house. Sometimes referred to as Wall Street, the exchange allows the World’s top 2000 businesses to trade their respective securities in an open market format.
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 – most often cash. This is the one true form of pure risk. Most other forms of investments generally have some form of collateral, credit, or cash flow to substantiate the investment.
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.
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 (owner). These rights include voting and residual value upon liquidation of the company.
