Investing term

What is Stock?

A unit of ownership in a company, also called a share. Entitles the holder to a proportional slice of profits and assets.

A stock (or share) is a unit of ownership in a company, entitling you to a proportional slice of its profits and assets. Owning stock makes you a part-owner of a real business — you benefit when it grows and prospers, and bear the loss when it struggles. Over long horizons, stocks have been the most powerful engine of wealth, paid for with the bumpiest ride.

For example

Buy one share of a company with a million shares and you own a millionth of it — its dividends, its growth, and its risks, all in proportion.

Stock is taught hands-on in Stage 4 — Stocks, Bonds, Cash & Alternatives.

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Related terms

AlternativesInvestments outside the core stocks/bonds/cash mix — REITs, commodities, gold, crypto.BondA loan from you to an issuer (government or company), repaid with interest on a known schedule.Capital gainThe profit from selling an investment for more than you paid.CommodityA raw physical good like gold, oil, wheat, or copper — priced by the ounce, barrel, or bushel.
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