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Stock

lastmod 2026-07-15created 2024-10-289 edits

A stock (株式; English: share, stock) is basically the unit that makes up the capital of a stock company, and refers to a certain equity interest that a shareholder, as a member, has contributed to the stock company, or the securities representing it. Shares, which are the equity interests of a stock company, and the equity interests of a partnership-type company are alike in that both signify the status of a member. However, shares are subdivided into units of equal proportion and one person may hold multiple interests (the principle of multiple interests), which makes them the same as the interests of a limited company, and different from the interests of a partnership-type company, where each member holds a single interest (the principle of a single interest) and only the size of that interest differs according to each member's contribution. Logically, in a partnership-type company the members come first, their contributions are determined, and the interests are determined accordingly; in a stock company, the capital is determined first and a person becomes a member by subscribing to shares (making a contribution). This is what makes members of a stock company impersonal and gives the stock company its character as a capital company. It is also sometimes called an "exterior" (oejang), since as a commodity exterior it comes to have market conditions and methods.

Etymologically, the word stock (German: Aktie, share, stock) refers to a member's claim against the company, but when we say stock today, it refers to

  1. a component of capital (Commercial Act Article 329(2), Article 464, etc.)
  2. the status of a member (membership rights or shareholder rights, Commercial Act Article 335, etc.)

and carries these meanings.

The word stock is sometimes used to mean "a security that confers shareholder rights," but the Commercial Act clearly distinguishes this as a "share certificate (株券)" (Commercial Act Article 335(2), Article 336), so using the term stock to mean a share certificate is either incorrect or merely colloquial.

Table of Stock (stock investment information)

Table of Stock (stock investment information)

Basic terms

Market capitalization, Stock, Shareholder, General meeting of shareholders, Par value, Buy, Sell, Quote, Market price, After-hours, Upper/lower price limit

Stock programs

Electronic trading platform (Electronic trading platform), HTS, MTS

Types of stock

Common stock, Preferred stock, Treasury stock, Golden share, Fractional shares

Stock characteristics

Large-cap stocks, Blue-chip stocks, Dividend stocks, Growth stocks, Value stocks, Dividend growth stocks, Low-priced stocks, Penny stocks, Dividend aristocrats, Emperor stocks, Theme stocks, Leading stocks, Sin stocks, Junk stocks, Low-float stocks, IPO stocks, Cyclical stocks, Defensive stocks, Private equity fund, Infrastructure investment trusts (InvITs), Real estate investment trusts (REITs), Business development company (BDC), Venture capital (VC), Special purpose acquisition company (SPAC), Over-the-counter market

Related theories

Portfolio theory, Dividend discount model, CAPM, APT, Efficient-market hypothesis

Market system, Policy

Initial public offering (IPO), Listing, Preliminary listing review, Delisting, Administrative issue designation, Dividend, Stock dividend, Stock option, Capital increase, Capital reduction, Reverse stock split, Stock split, Spin-off, Split-off (physical division), Dual-class voting rights, Daily price limit (upper/lower limit), DART, Corporate Value-up

Stock taxation

Dividend income tax (comprehensive financial income taxation), Capital gains tax on stocks, Financial investment income tax (planned), Securities transaction tax

Market conditions

Liquidity-driven market, Earnings-driven market

Trading types

Short selling, Day trading, Diversified investment, Long-term investment, Stop-loss, Averaging down, Program trading, Forced liquidation, System trading, Algorithmic trading, Fractional investing, Alternative investment, Fractional ownership investment, Quant investing

Market indices

Korea

KRX300, KOSPI (KOSPI200), KOSDAQ (KOSDAQ150)

United States

Dow Jones, S&P 500, NASDAQ, Russell 2000, PHLX Semiconductor Sector

Other countries

Nikkei 225, Hang Seng Index, Hang Seng China Enterprises Index, FTSE 100

Global

MSCI Index

Fundamental analysis

Financial statements

Statement of financial position, Statement of comprehensive income, Statement of changes in equity, Cash flow statement, Notes

Indicators

Return on assets (ROA), Return on equity (ROE), Earnings per share (EPS), FFO, AFFO, Price-to-earnings ratio (PER), Price-to-book ratio (PBR), EV/EBITDA(EV, EBITDA)

Technical analysis

Basic elements

Bar chart, Candlestick chart, Bullish candle, New high

Trend indicators

Moving average, DMI, MACD(MACD Oscillator), Parabolic Sar, Pivot Line

Momentum indicators

Momentum, Disparity index, P&F, Three-line break chart, Psychological line, AB Ratio, ADX, Chakin's Volatility, Mass Index, Price Oscillator, Price ROC, Relative strength (RSI), Stochastic, SONAR, TRIX, Williams%R

Volatility indicators

Volatility, ATR, Bollinger Bands, Envelope, Keltner Channels

Market strength indicators

Volume, OBV, Volume profile, CCl, Chakin's Osxillator, Volume moving average EOM, MFI, PVT, Volume Oscillator, Volume Ratio

Other

Ichimoku Kinko Hyo, Maximum drawdown (MDD)

Related financial products

Fund (index fund, inverse fund, fund of funds), Wrap account, ETF, ETN, ELS, Convertible bond, Bond with warrants, Futures, Options, Swap

Related crimes

Insider trading, Stock price manipulation, Accounting fraud

Other

Stock discussion board, Sobujang (materials, parts, and equipment), Chahwajeong (cars, chemicals, refiners), BBIG, Korea discount, Ants (retail investors), Leading rooms (quasi-investment advisory)

Share (finance)

"Stock" and "Share" both mean a stock, but there are slight differences.

Stock
"Stock" is a collective term for all the shares of a particular company.
The term "Stock" is also used when referring collectively to the shares of several companies, not just one.
For example, "I own stock in Apple and Google" means you own shares of Apple and Google, referring to the totality of shares issued by each company.
Share:
"Share" is a unit noun meaning one unit of a particular company's stock.
Since it means one piece of all the stock issued by a company, it carries a more specific and individual meaning.
For example, "I own 50 shares of Apple" means you own 50 of the shares issued by Apple.

In short, "Stock" is a term that expresses the concept of stock broadly, and "Share" is an individual unit of that stock.

Difference between securities and stocks

See Securities#Difference between securities and stocks.

Difference between long and short

Short Selling
In the stock market, 'short' means 'selling a stock' or 'betting on a falling stock price'. It is often used as short selling or sell short.
Short selling refers to gongmaedo (空賣渡). The 'gong (空)' in gongmaedo means empty, i.e., selling something you don't have in hand. You place a 'sell order' for a stock without owning it.
Long Positions
Long, the opposite of short, means buying or betting on a rising stock price. The key is that you judge the stock will go up, so you buy it and hold it. This state is called 'long positions'.
Many ordinary investors who are not experts buy stocks when they are cheap and sell them when they become expensive. This type of investing is long.

Hedge

Using derivatives such as futures and options to buy or sell in the market a position opposite to the spot position against losses that may arise from changes in the spot price.

Hedges are divided into long hedges and short hedges. A long hedge reduces the risk of price changes by buying futures to eliminate the risk of a price rise; conversely, a short hedge sells futures to avoid the risk of a price fall.

Stock transfer procedure and taxes

See also

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