WikiTrader For those of you who are just starting out your binary options career, let's go over the definition of a stock. A stock or capital stock of a company represents the original capital paid or invested into a business by its founders. It functions as a safety net for the creditors of a business since it cannot be withdrawn to their disadvantage. Now, it gets a bit more complicated because the stock of a business is divided into shares.

Depending on the total amount invested into the company, a share has a certain declared face value, commonly known as the par value of a share. The par value is the minimum amount of money that a company may issue and sell shares. For example, binary options traders can invest in Nike, a company that, in 1980, became publicly traded with an Initial Public Offering of 2,377,000 of Class B Common Stock on the New York Stock Exchange with the symbol NKE.

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