What is a stock & how does it work?

A stock is a security that represents a fractional ownership in a company. When you buy a company's stock, you're purchasing a small piece of that company, called a share. Investors purchase stocks in companies they think will go up in value. If that happens, the company's stock increases in value as well. The stock can then be sold for a profit.

What is a stock investment?

Stocks are an investment that allow you to own a portion of a public corporation. Stocks represent ownership in a publicly traded company. When you buy a company's stock, you become part-owner of that company. For example, if a company has 100,000 shares, and you buy 1,000 of them, you own 1% of the company.

What does it mean if a company owns a stock?

Stocks represent ownership in a publicly traded company. When you buy a company's stock, you become part-owner of that company. For example, if a company has 100,000 shares, and you buy 1,000 of them, you own 1% of the company. Owning stocks allows you to earn more from the company's growth and gives you shareholder voting rights.

What is the difference between a share and a stock?

Stock refers to ownership in the business as a whole. A share is one piece of the stock in the business. In some countries, such as Australia and England, the word "shares" is used in the same way the word "stock" is used in the U.S.