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The process by which a corporation issues shares of common stock to raise capital. Shareholders are given ownership proportionate to the number of shares they purchase and are entitled to dividends and voting rights.

Corporations issue preferred stock to investors who are then given preference over common stockholders in the event of dividends and liquidation. However, they often do not have voting rights.

A portion of a company's earnings distributed to shareholders. Dividends can be issued as cash payments, stock shares, or other property. These are typically paid out of current or retained earnings.

An IPO occurs when a private company becomes public by selling its shares to the public for the first time. The process helps raise capital for growth and expansion.

Occurs when a public company issues additional stock to raise more capital after an IPO. These offerings dilute the ownership stake of existing shareholders.

Funds invested in startups and early-stage companies with high growth potential in exchange for equity, or part-ownership, often involving significant risk for the investor.

A form of financial investment that involves capital investment made into companies that are not publicly traded. Private equity investors aim to realize a return through eventual resale or an IPO.

A corporation's repurchase of its own shares from the marketplace, reducing the number of outstanding shares and usually increasing the value of remaining shares.

The process by which a large number of individuals invest small amounts of money in a business in exchange for small stakes in that company. Used often by startups to bypass traditional funding routes.

Wealthy individuals providing capital to startups in exchange for ownership equity or convertible debt. Angel investors often give support to startups at an early stage where risks are higher.

Options give the holder the right, but not the obligation, to buy or sell a stock at an agreed-upon price within a certain period. Often used as part of employee compensation packages.

Long-term options issued by a company that give holders the right to buy the company's stock at a certain price until the expiration date. Similar to options, but typically last much longer.

Financial instruments such as bonds or preferred stock, which can be converted into a specified number of shares of common stock. A conversion feature provides flexibility to investors.

The decrease in existing shareholders' ownership percentage of a company as a result of the company issuing more shares. Dilution also usually reduces the value of existing shares.

A way for companies to raise capital by giving existing shareholders the right to purchase additional shares at a discount to the current market price before the new shares are offered to the public.

A corporate action where a company divides its existing shares into multiple shares, thereby increasing the number of shares outstanding. A stock split does not change the company's overall value.

A reduction in the number of a company's outstanding shares that increases the share price proportionately. Companies often do this to appear more financially stable and to meet stock exchange listing requirements.

A program that provides a company's workforce with an ownership interest in the company. In an ESOP, companies provide their employees with stock ownership, often at no upfront cost to the employees.

Equity interest or an increase in value earned by a company's founders and employees, often in lieu of cash payments. It reflects the effort and time they invest in the success of the company.

A systematic process of generating, capturing, and recording investor demand for shares during an IPO. This helps determine the price at which the securities should be offered.

A valuation ratio of a company's current share price compared to its per-share earnings.

The total dollar market value of a company's outstanding shares of stock. Calculated by multiplying the current market price of one share by the total number of shares outstanding.

A company's profit divided by the outstanding shares of its common stock, indicating how much money each share is entitled to when earnings are distributed.

The increase in the value of an asset or investment above its purchase price. For stocks, it's the profit realized when the shares are sold for more than they were bought.