Stock

Also known as: stocks, equity, shares

An ownership share in a company.

Definition

A stock gives the buyer partial ownership in a company. The value can rise or fall based on the company's results, market expectations, interest rates, and investor demand.

Example

Buying shares of a public company gives the investor stock ownership in that company.

Important Context

Stocks are liquid and easy to buy, but the owner usually has little control over how the company is run.

Related Terms