Plain-English definitions, reviewed by an independent investor
Stock (Share)
A stock is a slice of ownership in a company; holders share in its profits and losses.
A stock is a slice of ownership in a company; holders share in its profits and losses.
(Ownership unit; value = claim on the business)
Why it matters
It is the building block of nearly every portfolio.
Common confusion
Owning one share makes you a part-owner, but with no say in daily operations.
Frequently Asked Questions
Stock vs bond?
Stock is ownership and variable; a bond is a loan with scheduled interest.
Common vs preferred?
Common votes and fluctuates; preferred gets paid first but usually no vote.