A certificate of stock is a written paper signed by the proper officers of the corporation, naming the number of shares to which the person named therein is entitled, and the original value of the same.
Preferred stock is stock which is given a preference over the common stock. Ordinarily, a dividend is paid on the preferred stock before any is paid on the common shares.
Common stock is the ordinary stock of a corporation, which has no preference, in the payment of dividends, over any other.
The par value of a share of stock is the value named in the certificate of stock.
When a corporation is prosperous, its shares of stock often sell for more than the value named in the certificate of stock. They are then said to be above par, or at a premium. In times of business depression, often these shares of stock sell below their face value. They are then said to be below par, or at a discount.
The market value of a share of stock is the value for which it sells in the open market.
A stock broker is one who makes a business of buying and selling stocks and bonds. He charges a commission for this which is called brokerage.
A surplus is a part of the earnings of a corporation.
The gross earnings of a corporation are its total receipts from all sources.
The net earnings are the profits remaining when all expenses, losses, interest and debts due are paid.