Stocks provide an investor with equity ownership in a company. Each share of stock is a unit of ownership in the company. Shares of major U.S. companies are typically traded on well-known stock exchanges like the New York Stock Exchange (“NYSE”) or the NASDAQ. Stocks may provide income in the form of dividends, or may be traded (bought and sold) for a profit or loss. Companies offering publicly traded stock in the U.S. must file periodic reports with the Securities and Exchange Commission (“SEC”). Publicly traded stocks are one of the most heavily regulated types of investment.
Shares of stock may also be traded outside of an exchange. This is known as over-the-counter (“OTC”) trading. The bid and ask prices of OTC stocks and the market makers who trade them are published in pink sheets. Unlike companies on a stock exchange, companies quoted on the pink sheets system do not need to meet minimum requirements or file with the SEC.
Stocks may also be traded on foreign exchanges throughout the world; see, e.g., http://www.foreign-trade.com/finance.htm.
The investment and securities fraud attorneys at Moulton & Arney, LLP have extensive experience representing individual investors in securities arbitration and litigation. Cindy Moulton and Lance Arney have successfully represented thousands of clients in securities and investment fraud cases, with combined claims of hundreds of millions of dollars.
If you have suffered investment loss in Stocks, you may be entitled to recover all or part of your investment. To find out more about your potential claims against your broker/financial advisor, investment firm, or securities firm, please contact an experienced investment fraud attorney.