A small ownership slice of a company. As the company does well or badly, the value of your slice changes.
Example
You buy one share of a company at $50. A year later the company is doing well and the same share trades for $60. You can sell for a $10 gain. If the company has a bad year, the same share might trade at $35.
How it fits in
Owning a stock makes you a part-owner of the company. You share in its profits, paid as dividends, and in changes to its value. Over decades, broad stock indices have produced strong returns. Individual stocks regularly fall by half or more in a single year. The two horizons reward very different mindsets, which is why investing for the long run looks different from short-term trading.
Where this is taught
Practise it on the platform
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
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