F213. Corporate Equities and Stocks

Federal Reserve definition for F213 flow of funds table

Corporate equities are shares of ownership in financial and nonfinancial corporate business.

The category comprises common and preferred shares issued by foreign corporations, including shares held in the form of American Depository Receipts (ADRs).

It does not include mutual fund shares, which are reported separately in table F.214.

The total value of corporate equities includes the value of the shares of all corporations, both widely held and closely held and both traded on organized exchanges and sold over the counter.

Shares traded on the New York and American Stock Exchanges and in the Nasdaq Stock Market account for most of the total.

Purchase of Equities by Foreigners

Purchases of equities by foreigners are included in this table only if they are considered 'portfolio' investments, that is, if they are purchased by a single foreign investor that will result in ownership of less than 10 percent of the outstanding equity of the issuing firm; purchases by a single foreign investor that result in ownership of 10 percent of more of the outstanding equity of the firm's outstanding equity are considered foreign direct investment and are included in table F.230.

In tables of outstanding values, corporate equities are shown at market value. Because equities are ownership shares and a part of the net worth of corporations, they are not considered liabilities of the incorporated sectors.

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