Stock

A company's ownership, cut into small pieces

In detail

A stock is a share of ownership a company issues to raise money for its business. Buying one makes you a part-owner, a shareholder. If the company grows and becomes more valuable, the share price rises, and part of the profit may come back to you as a dividend. If results worsen, the value falls and your investment can shrink.

Example

If a company has 1,000,000 shares outstanding and you hold 10,000, you own 1% of it.

Related terms

Shareholder Share price Market capitalization

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For learning, not investment advice. Decisions are your own.