An agreement that gives an investor the right but not the obligation to sell a stock, bond, commodity or other instrument at a specified price within a specific time period. The date on which a shareholder must own a company's stock to be entitled to receive a dividend. An investment that represents part ownership of a company or a mutual fund. An investment that represents part ownership of a company. Common stocks provide voting rights but no guarantee of dividend payments.
Preferred stocks provide no voting rights but have a set, guaranteed dividend payment.
Also called shares. An agreement allowing an investor to buy or sell something, such as shares of stock, within a stipulated time and for a certain price. Also, it is a method of employee compensation that gives workers the right to buy the company's stock during a specified period of time at a stipulated exercise price. Additional shares are issued to existing shareholders, at a rate expressed as a ratio. Investors will own two shares after the split for each share they owned before the split.