Stocks & Investing

Stock

Also called: share, equity

A piece of ownership in a company.

When you buy a stock, you own a slice of a real business and a claim on its future profits. Prices move on how much investors think those future profits are worth. Owning stock is how ordinary people share in the growth of the economy over time.

For example

Buy 10 shares of a $50 stock and you own $500 of that company. If it grows and the price rises to $70, your stake is worth $700.

Related terms

Market CapitalizationDividendETF (Exchange-Traded Fund)Earnings (Earnings Report)

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