1 Once upon a time, when you bought broccoli you bought the whole vegetable, stems and crowns. Then it became customary for grocery store produce departments to separate the crowns from the stems and to sell the crowns at a premium. 2  Iâm not a fan of this practice, because I like both parts of the broccoli plant.
A company's first issue of common stock to the public is called an Initial Public Offering. Afterwards, a corporation may issue new equity at any time in order to finance its growth. When new common shares are offered to existing shareholders first, this is called a rights offering.
After determining the current stock price and multiplying by 100 (the current stock price is for a single share only), the investor must also add the commission charged by the broker. For example, if the current value of the PepsiCo stock (stock ticker symbol: PEP) is $60, the cost of 100 shares would be $6,000. If the broker charges a commission of $9.99, the total purchase cost would be around $6,009.99. Of course, these amounts are for example purposes only.