BROWSE

Half Stock

What is 'Half Stock'

Stock sold with a par value half of what is considered standard. Half stock can be either common or preferred and, other than the reduced par value, acts as a regular share of stock. The par value of a typical share of stock is $100, meaning that half stock has a par value of $50.

Explaining 'Half Stock'

The valuation of a share of common stock is typically the same for both a regular share of stock and half stock, since much of the stock's value is related to growth potential. Par value is an important factor in determining the dividend of a share of stock, making it more important for preferred stock. Additionally, preferred stock may have a higher claim on the proceeds of a company being liquidated, typically equivalent to its par value. This means that a half stock share of preferred stock would potentially receive less in liquidation.


Further Reading


Stock returns and expected business conditions: Half a century of direct evidence
www.nber.org [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

The stock–bond correlation and macroeconomic conditions: One and a half centuries of evidenceThe stock–bond correlation and macroeconomic conditions: One and a half centuries of evidence
www.sciencedirect.com [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

Financing decisions: who issues stock?Financing decisions: who issues stock?
www.sciencedirect.com [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

Financial literacy and planning: Implications for retirement wellbeingFinancial literacy and planning: Implications for retirement wellbeing
www.nber.org [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

Financial literacy and retirement preparedness: Evidence and implications for financial educationFinancial literacy and retirement preparedness: Evidence and implications for financial education
link.springer.com [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

Accounting for taste: Art and the financial markets over three centuriesAccounting for taste: Art and the financial markets over three centuries
www.jstor.org [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

Financial development and economic growth: an egg‐and‐chicken problem?Financial development and economic growth: an egg‐and‐chicken problem?
onlinelibrary.wiley.com [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

Stock returns and expected business conditions: Half a century of direct evidenceStock returns and expected business conditions: Half a century of direct evidence
amstat.tandfonline.com [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …

Long-term management of building stocksLong-term management of building stocks
www.tandfonline.com [PDF]
… are all smaller than that for ; indeed, those for , and are less than half that … Fama, E. and French, K. (1989), “Business Conditions and Expected Returns on Stocks and Bonds … Fama, E. and French, K. (1990), “Stock Returns, Expected Returns, and Real Activity,” Journal of Finance …