What Is Stock? Meaning & Example
Definition
A stock represents partial ownership in a company. Owning shares gives you a claim on part of the company's assets and profits, and sometimes voting rights.
Related terms
A stock exchange is a regulated marketplace where shares of public companies are bought and sold. It provides rules, transparency and a central place for buyers and sellers to meet.
DividendA dividend is a payment a company makes to its shareholders, usually from profits. Dividends are typically paid in cash on a regular schedule, but they are never guaranteed.
Market CapitalizationMarket capitalization is the total value of a company's shares, found by multiplying the share price by the number of shares outstanding. It is a quick way to gauge company size.
What is Stock?
A stock represents partial ownership in a company. Owning shares gives you a claim on part of the company's assets and profits, and sometimes voting rights.
Can you give an example of Stock?
If a company has 1,000,000 shares and you own 1,000, you own 0.1% of the business.