Stock

Definition

An ownership share in a company. Shareholders may benefit from price increases or dividends, but they can also lose some or all of their investment.

A share gives its owner a stake in the company’s future profits. Some shares also come with voting rights, and a company may distribute part of its profits as dividends. Investors can buy and sell publicly traded shares, and their prices move as expectations for the business change.

Example

You buy one share of Company A. That share gives you a small ownership stake in the company.